*DLM 4000.25, Volume 2, January 22, 2024*

*Change 17*

**C4. CHAPTER 4**

**REQUISITIONING**

C4.1.  GENERAL.  

	C4.1.1.  This chapter prescribes procedures for the preparation and submission of requisitions with specific requisitioning requirements involving Not Mission Capable Supply (NMCS), Anticipated NMCS (ANMCS), Pre-Positioned War Reserve Materiel Stock (PWRMS), conventional ammunition, subsistence, and GSA non-mailable items.  This chapter also provides procedures for requisition cancellations, modifications, and inquiries.  

	C4.1.2.  In addition, this chapter prescribes the source of supply and storage activity processing procedures of the aforementioned transactions including the preparation and processing of the materiel release, materiel release advice, and DAAS edits associated with requisition processing. 

	C4.1.3.  Specific requisition requirements involving Government Furnished Materiel and Contractor Furnished Materiel are identified in DLM 4000.25 Volume 2, Chapter 26.

	C4.1.4.  There are additional processing procedures over and above those contained in this chapter that must be applied for serially managed materiel requiring owner visibility at DLA Distribution Centers.  The identity of the materiel and the additive procedures are in Chapter 30.[footnoteRef:2] [2:  Refer to ADC 1244.] 

C4.1.5.  Transactions.  This chapter address procedures applicable submitting and processing requisition-related transactions.  The Defense Enterprise Data Standards Office (DEDSO) Website provides DLMS electronic data interchange (EDI) transaction formats on the DLMS Implementation Convention (IC) page.  The IC page also includes the corresponding MILSTRIP transaction formats by document identifier code (DIC).  The corresponding MILSTRIP legacy 80 record position transaction functionality is identified for information purposes in a mixed DLSS/DLMS environment.

		C4.1.5.1.  Requisition Transaction is DLMS 511R with Transaction Type Code A0 – Requisition.  This transaction provides the functionality of MILSTRIP legacy DIC A0_. 

		C4.1.5.2.  Requisition Modification Transaction is DLMS 511M with Transaction Type Code AM – Requisition Modification.  This transaction provides the functionality of MILSTRIP legacy DIC AM_. 

		C4.1.5.3.  Requisition Inquiry Transaction is DLMS 869A with Transaction Type Code AF – Requisition Follow-Up.  This transaction provides the functionality of MILSTRIP legacy DIC AF_.

		C4.1.5.4.  Requisition Supply Assistance Request Transaction is DLMS 869A with Transaction Type Code AR – Supply Assistance.  There is no equivalent MILSTRIP legacy DIC.

		C4.1.5.5.  Passing Order Transaction is DLMS 511R with Transaction Type Code BM – Requisition Passing Order.  This transaction provides the functionality of MILSTRIP legacy DIC A3_.

		C4.1.5.6.  Referral Order Transaction is DLMS 511R with Transaction Type Code BN – Requisition Referral Order.  This transaction provides the functionality of MILSTRIP legacy DIC A4_.

		C4.1.5.7.  Materiel Release Order Transaction is DLMS 940R with Transaction Type Code NA – Material Release Order.  This transaction provides the functionality of MILSTRIP legacy DICs A5_ with the exception of A5J, AMJ; or A4_ (except with Distribution Code 2 or 3).

		C4.1.5.8.  Materiel Release Confirmation Transaction is DLMS 945A with Transaction Type Code NJ – Material Release Confirmation.  This transaction provides the functionality of MILSTRIP legacy DIC ARA, ARB, AR0, AUA, AUB, and AU0).

		C4.1.5.9.  Materiel Release Advice Transaction is DLMS 945A with Transaction Type Code NL – Material Release Advice.  This transaction provides the functionality of MILSTRIP legacy DIC AE6.

		C4.1.5.10.  Materiel Release Denial Transaction is DLMS 945A with Transaction Type Code NK – Material Release Denial.  This transaction provides the functionality of MILSTRIP legacy DIC A6_, except A6J.

		C4.1.5.11.  Materiel Cancellation Advice is DLMS 945A, with Transaction Type Code NR – Material Release Cancellation Advice.  This transaction provides the functionality of MILSTRIP legacy DIC AG6.

C4.2.  PREPARATION OF REQUISITIONS.  Requisitioning organizations must use the DLMS 511R, Requisition, to submit requisitions for all materiel requirements. Conformance with standard line of accounting (SLOA)/accounting classification requires any initiation of a financial business event to include SLOA mandated standard financial information system (SFIS) elements.[footnoteRef:3]  DLMS requisition transactions support inclusion of SLOA required elements.  Pending full implementation of SLOA, Transaction Services will facilitate interoperability by updating selected SLOA data fields based upon the requisitioners Service/Agency and Fund Code.  If discrete values for the SLOA data elements in the transaction do not match data elements from the SFIS Fund Code to Fund Account Conversion Table for the Fund Code in the transaction, reject with the DLMS 870S Supply Status citing Status Code CF.  If invalid/missing fund code for Signal Code A, B, C, J, K, or L, reject with the DLMS 870S/DIC AE9 Supply Status citing Status Code CF.  Requisitions must be edited by the ordering application prior to acceptance of the order for further processing.  Image and post-post transactions will not be rejected by the source of supply or DAAS.[footnoteRef:4] [3:  Refer to ADC 1043/1043A.]  [4:  Refer to ADC 1043E.] 

	C4.2.1.  Document Number.  The document number uniquely identifies each requisition within the supply system as follows:

		C4.2.1.1.  Identification Code.  This consists of the first six positions of the document number and is a six-position constructed code for identification purposes.  Use the applicable DoD activity address code (DoDAAC) (AAC for Federal Civil Agencies).

		C4.2.1.2.  Transaction Control Date.  This is a four-position ordinal date (one position year of century and three-position day of year) to identify the requisition preparation date.  It is located in the seventh through tenth positions of the document number.

		C4.2.1.3.  Serial Number.  This is the assigned four-position line item code for each requisition within the transaction set.  It is located in the eleventh through fourteenth positions of the document number.  Use the Utilization Code in the LQ segment to identify the purpose of the requisition.

	C4.2.2.  Priority Designators and Required Delivery Dates

		C4.2.2.1.  Assignment of PD.  The priority designator (PD) is based upon a combination of factors that relate the relative importance of the requisitioners mission, expressed by its Force or Activity Designator (F/AD) (a Roman numeral) and the urgency of need of the end use expressed by the Urgency of Need Designator (UND).  The F/AD is assigned by the Secretary of Defense, the Chairman of the Joint Chiefs of Staff, or a DoD Component authorized by the Chairman of the Joint Chiefs of Staff, to assign F/ADs for their respective forces, activities, programs, or projects.  The criteria for assignment of an appropriate F/AD is in DoDM 4140.01.  The requisitioning activity determines the UND (an alphabetic character).

		C4.2.2.2.  Commanding Officer Responsibilities.  Commanding officers of requisitioning installations are responsible for the accurate assignment of PDs consistent with the F/AD and UND, and the validity of required delivery dates (RDDs) when assigned to requisitions.  Commanding officers of ILCOs, receiving requisitions from SA requisitioners, are responsible for review of assigned PDs and delivery dates.  Commanding officers must accomplish the following reviews prior to sending requisitions to the source of supply:

			C4.2.2.2.1.  Commander Requirements Review.  Commanders (or acting commanders during absences) must personally review all requirements based on UND A to certify an inability to perform the mission.

			C4.2.2.2.2.  Designation of Reviewers.  Commanders must designate, in writing, specific personnel who will personally review all requirements based on UND B to certify that the urgency has been accurately determined.

		C4.2.2.3.  Accurate assignment of the PD is a key element in ensuring that potentially scarce resources are appropriately allocated.  To preclude abuse or misuse of the PD, the Office of the Secretary of Defense has directed the Transaction Services to validate use of the PDs 01, 04, and 11, which are associated with special programs and top national priorities. Inappropriate assignments are identified for management review or automatic downgrading based upon Service/Agency guidance.  To pass validation, requisitions reflecting PD 01, 04, or 11 must identify the DoDAAC of the activity authorized use of F/AD I in the document number, ship-to, bill-to, or mark for party.[footnoteRef:5] [5:  Refer to ADC 1009A.  Automatic downgrade for PD 01 requisitions will not be authorized pending implementation of the mark-for party as an alternate location for the authorized activity DoDAAC.] 

		C4.2.2.4.  Determining UND.  Determine the appropriate UND as follows:

			C4.2.2.4.1.  UND A.  Use UND A in requisitioning materiel that is:

				C4.2.2.4.1.1.  Required for immediate end-use and without which the force or activity is unable to perform its assigned operational mission or without which the force or activity will be unable to perform its assigned operational mission within 15 calendar days (20 calendar days if the force or activity is located outside continental United States (OCONUS)).[footnoteRef:6] [6:  Materiel requirements of this nature affect the readiness of mission-essential materiel and actually result in a report of casualty in accordance with equipment readiness information systems authorized by the Office of the Secretary of Defense (OSD), the Chairman of the Joints Chief of Staff, or the DoD Component headquarters.] 

				C4.2.2.4.1.2.  Required for immediate installation on, or repair of, mission-essential materiel and without which the force or activity is unable to perform its assigned operational mission.

				C4.2.2.4.1.3.  Required for immediate end-use for installation on, or repair of, direct support equipment (such as ground support and firefighting) necessary for the operation of mission-essential materiel.[footnoteRef:7] [7:  Ibid.] 

				C4.2.2.4.1.4.  Required for immediate end-use in the replacement or repair of mission-essential training materiel and without which the force or activity is unable to perform its assigned training missions.

				C4.2.2.4.1.5.  Required for immediate end-use to effect the replacement or repair of the essential physical facilities of an industrial or production activity and without which that activity is unable to perform its assigned missions.

				C4.2.2.4.1.6.  Required for immediate end-use to eliminate an existing work stoppage at an industrial or production activity that is engaged in manufacturing, modifying, or maintaining mission-essential materiel.

				C4.2.2.4.1.7.  Required for immediate end-use to eliminate an existing work stoppage on a production line that is performing repair and maintenance of unserviceable items having a Military Mission Essentiality Code of 1 or 2.

			C4.2.2.4.2.  UND B.  Use UND B in requisitioning materiel that is:

				C4.2.2.4.2.1.  Required for immediate end-use and without which the capability of the force or activity to perform its assigned operational mission is impaired.

				C4.2.2.4.2.2.  Required for immediate installation on, or repair of, mission-essential materiel and without which the capability of the force or activity to perform its assigned operational missions is impaired.[footnoteRef:8] [8:  Materiel requirements of this nature directly affect the capability of the force or activity to perform its mission; it can temporarily accomplish assigned missions and tasks but with effectiveness and efficiency below the DoD Component Headquarters-determined level of acceptable readiness.] 

				C4.2.2.4.2.3.  Required for immediate end-use for installation on, or repair of, auxiliary equipment.  Auxiliary equipment is defined as equipment that supplements mission-essential materiel or takes the place of such materiel should it become inoperative.

				C4.2.2.4.2.4.  Required for immediate end-use in the replacement or repair of mission-essential or auxiliary training equipment and without which the capability of the force or activity to perform its assigned missions is impaired.

				C4.2.2.4.2.5.  Required for immediate end-use to effect replacement or repair of the essential physical facilities of an industrial or production activity and without which the capability of that activity to perform its assigned missions is impaired.

				C4.2.2.4.2.6.  Required to preclude an anticipated work stoppage at an industrial or production activity that is engaged in manufacturing, modifying, or maintaining mission-essential materiel.

				C4.2.2.4.2.7.  Required to preclude an anticipated work stoppage on a production line performing repair and maintenance of unserviceable intensive management or critical items.

				C4.2.2.4.2.8.  Required for the immediate replacement of the safety level quantity of mission-essential items on allowance and load lists (such as, prescribed load lists, spares kits, station sets, or coordinated shipboard allowance lists) when the last item has already been issued.

				C4.2.2.4.2.9.  Required for immediate stock replenishment at overseas forward area supply activities when a customer's mission-essential stock level goes below the safety level and stock due in is not anticipated to arrive prior to stock on hand reaching a zero balance.  The quantity ordered should be the minimum amount sufficient to ensure the maintenance of a positive stock balance until materiel that is due in actually arrives.

			C4.2.2.4.3.  UND C.  Use UND C in requisitioning materiel that is:

				C4.2.2.4.3.1.  Required for on-schedule repair, maintenance, manufacture, or replacement of all equipment.

				C4.2.2.4.3.2.  Required for replenishment of stock to meet authorized stockage objectives.

				C4.2.2.4.3.3.  Required for purposes not specifically covered by any other UND.

		C4.2.2.5.  Deriving PDs. Refer to Table C4.T1 to derive the PD from the F/AD and UND. 

		C4.2.2.6.  Validation of F/AD Activities.  By direction of the Office of the Secretary of Defense, the Transaction Services will validate F/AD I usage through the requisitioning process.  Transaction Services will maintain an edit table consisting of authorized F/AD I activities.  To preserve accuracy and timely update, the Joint Chiefs of Staff (JCS) will forward to Transaction Services and GSA all Office of Secretary of Defense (OSD) approved assignments of F/AD I immediately upon approval.  Telephonic or electronic communication, to include online update, with Transaction Services and GSA is authorized for time-sensitive updates; however, formal documentation will be forwarded to Transaction Services and GSA to support inclusion of all F/AD I authorized activities.  In order to maintain unclassified communication, the JCS contact points are advised to identify authorized activities by DoDAAC only (no clear-text activity names) and make no reference to the associated F/AD.  F/AD I requisitions (DLMS 511R or DLMS 511M, Modification, Transaction Type Codes A0, BM, BN, AM) that do not identify an authorized activity in the document number, ship-to, bill-to, or mark-for fields will be identified for investigation without interruption of normal requisition processing.  In addition, Transaction Services will assess the validity of transactions that bypass the F/AD I validation process as a result of alternative requisition submission, (e.g., Defense Supply Expert System (DESEX)) input, using the requisition image transaction.  Suspected abuse will be output to the Unauthorized Priority Designator Assignment Report.

			C4.2.2.6.1.  The Unauthorized Priority Designator Report produced by Transaction Services identifies suspected abuse of PD assignment.  This report also provides visibility of requisitions downgraded automatically by Transaction Services during requisition processing based upon the DoD Component authorization.  The report is prepared monthly.  Summary sections, Parts I, II, IV, and V, are also available quarterly and annually.  The report is in seven parts as follows:  

				C4.2.2.6.1.1.  Part I – Service/Agency Summary of Requisitions Submitted Through DAAS,

				C4.2.2.6.1.2.  Part II – DoDAAC Summary by Service/Agency of Requisitions Submitted Through DAAS,

				C4.2.2.6.1.3.  Part III – Requisition Detail by DoDAAC of Requisitions Submitted Through DAAS,

				C4.2.2.6.1.4.  Part IV – Service/Agency Summary of Requisitions Not Submitted Through DAAS,

				C4.2.2.6.1.5.  Part V – DoDAAC Summary by Service/Agency of Requisitions Not Submitted Through DAAS,

				C4.2.2.6.1.6.  Part VI – Requisition Detail by DoDAAC of Requisitions Not Submitted Through DAAS,

				C4.2.2.6.1.7.  Part VII – Requisition Detail by DoDAAC for Requisitions Downgraded to a Lower Priority by DAAS. 

			C4.2.2.6.2.  RESERVED.  

			C4.2.2.6.3.  GSA Requisitions.  DLMS requisitions submitted directly to GSA for GSA managed items will be reviewed for appropriate PD assignment prior to further processing.  Any requisitions with PD 04 or PD 11 will be downgraded as follows:  if the PD is 01 (for USCG, USAF JM accounts and SA only) then DAAS will change to PD 03; if PD 04, DAAS will change to PD 06; and if PD 11, DAAS will change to PD 13.[footnoteRef:9]  PD 01 requisitions may be downgraded with the exception of Air Force (Service Code F) requisitions.[footnoteRef:10]  GSA will notify the requisitioner of the downgrade by generating a Supply Status Transaction with BK Status, and route to DAAS for distribution to the correct recipient(s) depending on the Media/Status and Distribution Codes in the transaction.  The modified requisition will be forwarded within GSA for processing based on the new PD.  GSA will report downgrading action to DAAS via the DLMS 511R (future enhancement) Transaction.  Action will allow Transaction Services to merge GSA priority abuse data into the Unauthorized Priority Designator Assignment Report on a monthly basis. [9:  Effective November 3, 2003, Transaction Services implemented logic change to allow requisitions with DoDAAC N00421 in rp 30-35, Document Number Serial Numbers FQ and GQ (in rp 40-41) and PDs 04 and 11 to pass through Transaction Services processing without being downgraded.  Requisitions with DoDAAC N00421, document number serial numbers beginning with FQ and GQ for PDs 01, 04, and 11 will not be included in the monthly Priority Designator Reports.]  [10:  Refer to ADC 279, Automated Downgrade for Priority Abuse and Reporting Procedures. The exception for the Air Force is an interim waiver pending better methodology for identification of the F/AD 1 authorized activity in AF requisitions.] 

			C4.2.2.6.4.  FedMall Requisitions.  DAAS will apply automatic downgrading to FedMall prepared requisitions unmatched to the Authorized DoDAAC List with exception of Air Force PD 01 and MILSTRIP Order Entry Program (MOES) PD 01.

			C4.2.2.6.5.  Participating Service/Agency Points of Contact Responsibilities.  DoDM 4140.01, Appendix 9, requires the DoD Components to designate a single office of primary responsibility to act as focal point for Uniform Materiel Movement and Issue Priority System (UMMIPS) matters.  To provide clear visibility of such points of contact, the JCS, the Military Services, DLA (if needed), and GSA, will provide contact information to DEDSO for publication in the DLM 4000.25, Volume 2, Appendix 7.14.  Contact information will include office name/symbol and communications numbers.  Primary and alternate information should be included.  The DoD Component responsibilities for monitoring F/AD assignments and conducting annual reviews are prescribed in DoDM 4140.01.

			C4.2.2.6.6.  The Service/Agency F/AD Points Of Contact:  Refer to the DEDSO Website for the list of contacts.  

		C4.2.2.7.  Special Circumstance Precedence.  In the following special circumstances, use the stated PD, irrespective of F/AD, but do not use for the routine replenishment of stocks to meet authorized stockage objectives:

			C4.2.2.7.1.  Emergency Medical/Disaster Supplies.  Use PD 03 for medical or disaster-relief supplies or related items of equipment that are required immediately for:

				C4.2.2.7.1.1.  Prolonging life, relieving avoidable suffering, or expediting recovery in case of injury, illness, or disease.

				C4.2.2.7.1.2.  Avoiding or reducing the impact of epidemics or similar potential mass illnesses or diseases when in the opinion of medical professionals the probability of epidemics or similar potential mass illnesses is imminent.

			C4.2.2.7.2.  Emergency Civil Disturbance Equipment.  Use PD 03 for emergency supplies or items of equipment that are required immediately for controlling a civil disturbance, civil disorder, or rioting.

			C4.2.2.7.3.  Individual Emergency Supplies Precedence.  Use PD 06 for emergency supplies of individual and organizational clothing required immediately to provide a minimum of essential clothing to active duty military personnel who are actually without their required clothing.

		C4.2.2.8.  Specific End-Use Requisitions.  If local stocks are exhausted and the local supply activity must requisition a specific immediate end-use requirement for a supported activity with a higher F/AD, the supply activity may assign a PD, commensurate with the F/AD of the supported unit, to the specific requirement.  Do not use this authority for the routine replenishment requirements of the supported unit.

		C4.2.2.9.  Commercial Contractor GFM Requisitions.  Whenever a DoD Component executes a contract that provides that a commercial contractor will requisition GFM from the DoD distribution system, the DoD contracting officer will advise the contractor of the PDs to use in such contractor-prepared requisitions.  The advice will be aware of the F/AD of the national priority program, force or activity for which the contract is executed, and the potential urgencies of need.

		C4.2.2.10.  Issue Priority Groups.  PDs are grouped into Issue Priority Groups (IPGs) as follows:

			C4.2.2.10.1.  PDs 01, 02, and 03 form IPG I

			C4.2.2.10.2.  PDs 04, 05, 06, 07, and 08 form IPG II

			C4.2.2.10.3.  PDs 09, 10, 11, 12, 13, 14, and 15 form IPG III.

		C4.2.2.11.  Required Delivery Dates (RDD)

			C4.2.2.11.1.  Response Time Requirements.  Requisitioning activities, after determining the appropriate PD applicable to requisitions, will determine the appropriate entry for the RDD data field.  The combination of the PD and the designation or nondesignation of an RDD or other allowable entry[footnoteRef:11] will determine the supply and transportation system response time requirements.  The response times (UMMIPS time standards) are displayed in DoDM 4140.01. [11:  Non-date entries in the RDD field, (i.e., Codes E, F, N, R, 444, 555, 777, and 999), are referenced as Special Requirement Codes under the DLMS.] 

			C4.2.2.11.2.  Nonstandard Delivery Times.  When an RDD shorter than the UMMIPS time standards is assigned, the appropriate PD, consistent with the activity's F/AD and UND, must be cited in the requisition.

			C4.2.2.11.3.  Customer Unspecified Delivery Date.  If the customer does not specify a delivery date, the customer should expect the total time from order placement to delivery to be within the total order and ship time specified by the UMMIPS time standards.

			C4.2.2.11.4.  Mandatory RDD Data Field Requirements.  For subsistence, the RDD is mandatory in all requisitions, with the assigned PD prescribing the precedence of internal supply processing actions for requisitions showing identical RDDs.  To ensure delivery on the RDD, the Inventory Control Point (ICP)/storage activity may bank the requisitions until the correct processing date; computed by  subtracting number of days needed for depot processing and transit time from the RDD.  Submit all requisitions using schedules established by the ICP.

			C4.2.2.11.5.  Collocated Stock.  If the customer is collocated with the storage activity issuing the materiel, or has, through local negotiations, obtained collocated customer status and does not require the fastest possible service of the supply and transportation system, the customer should cite Special Requirements Code 444 in the LQ segment and not indicate an RDD.

		C4.2.2.12.  Expedited Handling and Expedited Transportation.  Requisitioners may request expedited handling and transportation by citing Special Requirements Code 777.

	C4.2.3.  Nonreimbursable Materiel.  Use the no-charge indicator in non-excess personal property requisitions to identify the requisitions for nonreimbursable materiel.  Use the utilization code in requisitions to the DLA Disposition Services for excess personal property requisitions to denote free issue.  See Chapter 16 for reutilization and marketing requisitioning procedures.

	C4.2.4. Requisitioning from DLA Disposition Services.  See Chapter 16, Disposition Services, for requisitioning procedures.

	C4.2.5.  Requisitioning Contractor Inventory From Plant Clearance Automated Reutilization Screening System (PCARSS).  Acquiring agencies may view excess Government-furnished property (GFP), create requisitions, and see the status of current requisitions using PCARSS eTools.  Authorized users may search for inventory or create alerts to be notified when desired items become available.  The requisition content does not conform to MILSTRIP procedures/formatting.  Detailed information about PCARSS requisitioning procedures is available on the DCMA Website.

	C4.2.6.  Exception Data.  Requisitioners must limit repetitive exception data to aid timely source of supply processing of requisitions to meet IPG processing times, standard delivery dates (SDDs), or RDDs, particularly those that satisfy high priority requirements.  Use available requisitioning capabilities to ensure maximum utilization of automated processes.  Processing exception data requisitions is resource intensive, prone to errors, and generally delays required support.  The sources of supply will disregard all unnecessary exception data (such as ship by commercial air, do not use postal system, ship by fastest traceable means, or ship overnight delivery) and continue processing.  Sources of supply will process all requisitions under UMMIPS (see DoDM 4140.01).  Within the UMMIPS time segment for transporting the materiel, it is the shipper's prerogative to select the mode of shipment based on time, distance, item characteristics, and economic factors.  The repetitive use of the same exception ship-to address is an uneconomical way of doing business for all concerned.  A separate DoDAAC assignment for this type of ship-to address should be made or the Transportation Account Code (TAC) 2 address of the involved activity should be changed and the resulting DoDAAC(s) used on applicable requisitions.  Activities having multiple locations should assign a separate DoDAAC to each receiving location.  It is incumbent upon the requisitioner to work with the applicable DoD Component focal point to develop procedures to automatically process requisitions.

	C4.2.7.  Limitation on Use of Exception Data

		C4.2.7.1.  Applicability.  Exception data will normally be limited to the conditions listed below.  Commanders must approve, or delegate in writing to specific personnel the authority to approve, the submission of exception-data requisitions.

		C4.2.7.2.  Authorized Conditions.  Authorized conditions for use of exception ship-to addresses are listed below.  Requisitions containing exception ship-to addresses other than those listed will be rejected with Status Code D6.  As of April 1, 2014, the inclusion of a country code not valid with the current Geopolitical Entities, Names, and Codes (GENC) Standard will result in a DAAS reject.  For requisitions (DLMS 511R, 511M, 869F) and materiel release orders (DLMS 940R), DAAS will reject using the DLMS 824R Reject Advice citing Reject Advice Code AU.[footnoteRef:12] [12:  Refer to ADC 1075.] 

			C4.2.7.2.1.  Sales/donations/issues of materiel to qualifying Federal, state, or civil organizations or individuals approved by the Service Secretaries.

			C4.2.7.2.2.  Issues of nuclear assets as directed by Defense Threat Reduction Agency to Department of Energy contractors.

			C4.2.7.2.3.  Materiel in Supply Condition Code (SCC) L to contractors.

			C4.2.7.2.4.  Issues required by national emergency or natural disasters.

			C4.2.7.2.5.  Shipments of ammunition requiring special controls.

			C4.2.7.2.6.  Shipments to contractors for special testing.

			C4.2.7.2.7.  Requisitions from deployed naval units with an R or V in the first position of the document number; Utilization Code E, G, or W; PD 01, 02, or 03; and Special Requirements Code 999.

			C4.2.7.2.8  FedMall -generated requisitions using a Government purchase card as the method of payment and the non-contractor ship-to location is not identified by a DoDAAC.  Requisitioners must use the DoDAAC applicable to the ship-to locations when assigned.  See paragraph C4.2.4. for additional guidance.

		C4.2.7.3.  Limitations.  Exception data will normally be limited to the following:

			C4.2.7.3.1.  Non National Stock Number (NSN) lumber products identified and ordered by description only or other commodities that require additional descriptive information.

			C4.2.7.3.2.  Authorization/identification for items when such requirement is imposed by the ICP, by the parent Component, or by the requisitioning activity.

			C4.2.7.3.3.  NSN requirements needing additional identifying information; for example, requisitions initially rejected with Status Code CG or CJ.

			C4.2.7.3.4.  Requisitions for LEVEL 1/SUBSAFE and nuclear reactor plant materiel.

			C4.2.7.3.5.  NSN items for chemicals for boiler water and feed water analysis.

			C4.2.7.3.6.  Requisitions used to establish a registered user with the ICP in a Primary Inventory Control Activity (PICA)/Secondary Inventory Control Activity (SICA) situation. 

			C4.2.7.3.7.  Requisitions for Marine Corps Pre-Positioned War Reserve (PWR) or Pre-Positioning Ships Program.

		C4.2.7.4.  Automated submissions of requisitions containing exception ship-to addresses may be authorized by agreement with the source of supply.  Exception ship-to addressing is only authorized where the ship-to location is not identified by a DoDAAC.  This exception cannot be applied to requisitioning for shipment to a contractor.  Automated submissions must include identification of the customer via a system-generated customer identification code that cannot be overridden by the user as described under Volume 2, Appendix 6.35, Customer Identification.  DAAS will generate the customer identification for automated submissions (e.g., via Defense Automatic Addressing System Automatic Message Exchange System (DAMES) of the DLA-supported DIC YRZ requisition trailer for ship-to exception data.

		C4.2.7.5.  Exception Address Information in the Materiel Release Confirmation.  The shipping activity must include address line details in the MRC when the full address details would not otherwise be available to the owner/program manager transactionally.  When the owner-generated MRO identifies a clear-text ship-to address there is no requirement to perpetuate this address in the confirmation beyond the first address line containing the organization name.

	C4.2.8.  Special Program Requirements.  Requisitions resulting from special program requirements (SPRs) must cite the associated SPR transaction number to establish an audit trail between the draw-down requisition and the SPR against which the requirement was established.

	C4.2.9.  Nonstandard Materiel.  The requisitioner may cite an estimated unit price to advise the source of supply of a reasonable expectation of the cost of the item.  The source of supply may contact the requisitioner, if in its estimation, the price incongruity between estimated price and quoted price warrant further clarification relative to the item being ordered.  Requisitioners should use the last price paid as their estimate if they have previously ordered the item or use the price of a similar item ordered if they have not previously ordered the item.

	C4.2.10.  PREPARATION/PROCESSING OF REQUISITIONS SUBMITTED VIA INTERNET ORDERING APPLICATIONS.  Developers and users of internet ordering applications which permit requisitions to be initiated outside the responsible Component’s supply system, (e.g., direct customer input to FedMall, GSA Advantage/GSA Global, etc.) will take precautions to ensure that only authorized personnel place orders and all standard financial and logistics procedures are followed.

		C4.2.10.1.  DoD Components authorizing the use of ordering processes external to the Component-sponsored supply system will:

			C4.2.10.1.1.  Establish internal controls to identify/approve authorized users.  This may be accomplished in coordination with the ordering application program management or independently in the absence of a satisfactory registration program for the internet ordering process.

			C4.2.10.1.2.  Notify users that they are required to manually establish an obligation for requisitions dependent on Interfund payment procedures, prior to/concurrent with placing orders via internet ordering applications, except where an interface is established with the requisitioner’s Component application to validate funds availability and establish an obligation.

			C4.2.10.1.3.  Ensure that appropriate procedures are established to record the demand and establish a due-in/pre-positioned materiel receipt under DoD MILSTRAP/DLMS based upon status provided by the supply source.  Alternative manual Component procedures may be employed pending systemic interfaces to support return of supply and shipment status by the supply source.

			C4.2.10.1.4.  Ensure materiel receipt acknowledgement under DoD MILSTRAP/DLMS procedures via systemic interface or, where not available, instruct users to provide receipt notification via FedMall (this includes non-FedMall originated orders). 

		C4.2.10.2.  Supply sources authorizing the use of ordering processes external to the customer’s Component-sponsored supply system shall:

			C4.2.10.2.1.  Coordinate with DoD Components to establish controls to ensure users are identified and authorized.  If a satisfactory registration program is not available, users must be alerted to comply with Component-directed procedures.

			C4.2.10.2.2.  Support adherence to standard financial procedures via systemic interface or manual procedures as follows:

				C4.2.10.2.2.1.  Establish an interface between the external ordering application and the appropriate Component-sponsored application to validate funds availability and establish the obligation, or 

				C4.2.10.2.2.2.  Pending development of automated processing, alert users to comply with Component-directed manual procedures.  

				C4.2.10.2.2.3.  Procedures for real-time funds availability for on-line applications are provided under DLMS Vol 4, Chapter 7.[footnoteRef:13] [13:  Refer to ADC 328] 

			C4.2.10.2.3.  Use standard requisition formats under MILSTRIP/DLMS where necessary to transmit the requisition from the external ordering application to the source of supply for further processing.

			C4.2.10.2.4.  Provide order and shipment status information to the customer and applicable status recipients in accordance with MILSTRIP/DLMS. 

			C4.2.10.2.5.  Where feasible, internet ordering applications will integrate use of a replicated DoDAAC table to perform validation of requisitions for authorized ordering, bill-to, and ship-to activities according to the DoDAAC Authority Code.  If the DoDAAC fails the authority code edits in C4.10.10., the transaction will be rejected. 

	C4.2.11.  Contact Information

		C4.2.11.1.  Requisitioning organizations should provide point of contact information in requisitions and requisition-related transactions.  This information identifies the person or office to whom the source of supply should direct communications to support deliveries or inquiries.

		C4.2.11.2.  The point of contact information must include the following:

· Contact name or job title,

· E-mail address and/or commercial phone number,

· An office symbol or activity code.

		C4.2.11.3.  Requisitioning organizations should provide a job title if a name is not authorized in accordance with applicable security or privacy reasons.

	C4.2.12.  Not-Mission-Capable Supply and Anticipated Not-Mission-Capable Supply Requisitions

		C4.2.12.1.  General

			C4.2.12.1.1.  Approval Authority.  Commanders will approve, or delegate in writing to specific personnel the authority to approve, all NMCS/ANMCS requisitions and submit the requisitions by the most expeditious means.  Commanders of the DoD Component ILCOs will approve, or delegate in writing to specific personnel the authority to approve, all FMS CLSSA requisitions applicable to NMCS or ANMCS conditions.

			C4.2.12.1.2.  Priority Requirements.  Submit NMCS and ANMCS requisitions only for the quantities of materiel needed to return the mission-essential system or equipment to mission capable/operationally ready status or when items are not available in ready-for-issue condition at the supporting post, camp, station, or OCONUS theater.  Use overnight or next day delivery service for NMCS and ANMCS shipments whenever possible.

		C4.2.12.2.  Not-Mission-Capable Supply Conditions Meeting Special Requirements Code 999

			C4.2.12.2.1.  Use.  Use Special Requirements Code 999 in PD 01-03 requisitions for materiel that will cause an NMCS condition to occur in mission-essential systems and equipment.  Special Requirements Code 999 identifies transactions related to critical items as requiring expedited handling.  Any special requirements code used in the requisition must appear in the materiel release order (MRO) and the shipping documentation.  This procedure applies only to NMCS materiel shipped to U.S. Forces OCONUS or to Forces alerted for deployment within 30 calendar days of the date of the NMCS requisition.  Special Requirements Code 999 does not apply to SA.

			C4.2.12.2.2.  Purpose.  Special Requirements Code 999 identifies the need for expedited handling of the NMCS materiel when meeting the specific conditions listed below.  (The commanding officer of the requisitioning activity will either personally review, or delegate in writing to specific personnel the authority to review, all requisitions identified for expedited handling to certify compliance with the prescribed criteria.)

				C4.2.12.2.2.1.  The requisitioning unit must possess F/AD I, II, or III, and,

				C4.2.12.2.2.2.  The items or equipment required are causing mission-essential systems or equipment to be incapable of performing any of their assigned missions (NMCS) or,

				C4.2.12.2.2.3.  The items or equipment required have been identified during maintenance or testing as necessary to prevent mission-essential systems or equipment from being unable to perform assigned operational missions or tasks within five calendar days of the date of the requisition.

		C4.2.12.3.  NMCS Conditions Meeting Special Requirements Other Than Special Requirements Code 999.  Apply the following to requisitions for NMCS conditions other than Special Requirements Code 999 originating from activities where Forces in CONUS are not alerted for deployment:

			C4.2.12.3.1.  Use PDs 01-08 only.

			C4.2.12.3.2.  Cite Special Requirements Code N.  Note:  FMS requisitions applicable to NMCS conditions will cite Special Requirements Code N, which identifies transactions related to critical items and requiring expedited handling.

			C4.2.12.3.3.  Indicate short RDDs.

			C4.2.12.3.4.  Use the PD to process these requisitions.

		C4.2.12.4.  ANMCS Conditions.  Prepare requisitions for materiel to prevent degradation of the mission capability of such systems/equipment as follows:

			C4.2.12.4.1.  Use PDs 01-08 only.

			C4.2.12.4.2.  Cite Special Requirements Code E.  Note:  FMS requisitions applicable to ANMCS conditions must cite Special Requirements Code E, which identifies transactions related to critical items and requiring expedited handling.

			C4.2.12.4.3.  Indicate short RDDs.

			C4.2.12.4.4.  Use the PD to process these requisitions.

	C4.2.13.  Pre-Positioned War Reserve Material Stock (PWRMS) Requisitions

		C4.2.13.1.  Initial Fill.  Use Demand Code O and Project Code 3AA to identify requisitions for the initial fill of PWRMS consumable item requirements.  Use Project Code 3PR in PWRMS replenishment requisitions.  DoD organizations cannot submit non-reimbursable requisitions to GSA.

		C4.2.13.2.  Reimbursements.  Use the appropriate treasury symbol number and fund purpose code in all reimbursable requisitions for PWRMS requirements.  Only use PDs 11-15 in reimbursable requisitions for PWRMS requirements; however, if overriding or operational situations justify immediate supply support, use PDs 01-03.

	C4.2.14.  Conventional Ammunition Requisitions

		C4.2.14.1.  DoD Component owners of single manager for conventional ammunition (SMCA) managed items may grant authority to the SMCA ICP to issue assets below established stock reservation levels.  The Component owner must convey this authority to the SMCA ICP by using Advice Code 2S in a DLMS 511R transaction.

		C4.2.14.2.  Use Advice Code 3Q, 3V, 3W, 3X, 3Y, or 3Z, as applicable, when usable SCC E materiel is acceptable.

	C4.2.15.  Special GSA Procedures on Non-Mailable Items

		C4.2.15.1.  Advice Code 2A Processing.  GSA will process requisitions received with Advice Code 2A (item not available locally) regardless of the possible excessive transportation costs.

		C4.2.15.2.  Low Item Value.  GSA will cancel requisitions (with Status Code CW) when received without Advice Code 2A for an item valued at $25 or less if, at the time of shipment, transportation costs incurred for shipping that order is in excess of 50 percent of the item value.  GSA will notify the ordering activity when this condition exists and the requisitioner should attempt to procure the item locally.  If local procurement cannot be effected, submit a new requisition with Advice Code 2A.  In response, GSA will supply the item regardless of the transportation costs.

		C4.2.15.3.  Non-Applicability.  These procedures do not apply to SA requisitions.

	C4.2.16.  Special Procedures Associated with Industrial/Maintenance Site Requisitions

		C4.2.16.1.  Industrial/Maintenance Site Requisitions Subsequent to Receipt of Product Quality Deficient Materiel.  Under approved procedures for Base Realignment and Closure (BRAC) Supply, Storage and Distribution (SS&D) Inventory Management and Stock Positioning (IMSP) industrial/maintenance sites, the requiring activity is authorized to submit requisitions or requisition alerts (Navy IMSP only) citing Management Code P to request the DLA source of supply satisfy the specified requirement for an alternative source.  These replacement requisitions will also include the original funded requisition document number/suffix for cross-reference.  This is applicable when timely replacement is required subsequent to receipt of a quality deficient item for which a Product Quality Deficiency Report (PQDR) has been submitted.  Use of Management Code P ensures materiel received is not subject to the same quality deficiency as previously supplied materiel and avoids delays while existing wholesale stock is screened for quality.

		C4.2.16.2.  Industrial/Maintenance Requisitions Subsequent to Receipt of Storage Activity Denial for Release of Materiel Purchased from DLA.  Under approved procedures for BRAC Inventory Management and Stock Positioning (Navy IMSP only) industrial/maintenance sites, the requiring activity is authorized to requisition citing Management Code 3 or 9 to request the DLA source of supply satisfy the specified requirement from an alternative storage location or new procurement, if no stock is available.  This is applicable only when re-requisitioning subsequent to purchase of materiel that was sourced from a collocated depot without visual inspection of the materiel.  Use of the Management Code 3 will indicate that purchased materiel did not satisfy shelf-life requirements.  Management Code 9 will indicate that the materiel was not available in one continuous length.  The prior (original) requisition document number and shipment suffix code (if applicable due to split shipment), must be included on the new requisition.  The originally purchased materiel will be returned to DLA via BRAC returns procedures.

	C4.2.17.  Timeframes and Submission of Requisitions

		C4.2.17.1.  Frequency.  The frequency of submitting requisitions is the sole prerogative of the requisitioner and, except for subsistence items; the distribution systems will not prescribe scheduling.  Submit requisitions when necessary to meet requirements for stock or to meet specific requirements for immediate use.  To make the system more efficient and cost-effective, activities should consider consolidating requirements to reduce the submission of low-value requisitions.

		C4.2.17.2.  Effective Time Period.  The requisition submission time period extends from the date of the requisition to the date of receipt by the initial wholesale source of supply; for example, the ICP or stock point that maintains any asset availability records for the purpose of filling materiel demands or ordering other supply action.

			C4.2.17.2.1.  Requisition Date.  The date of requisition will indicate the actual date of transmittal from the requisitioner to the initial source of supply.  Do not predate requisitions to facilitate local processing.  The transaction set process will reflect the true date of transmittal.

			C4.2.17.2.2.  Approval Time.  Time consumed by review/approval of control offices that are intermediary between the requisitioner and the initial source of supply is counted in the time standard for this segment.

	C4.2.18.  Maintenance of Requisition History and Due-In Files

		C4.2.18.1.  Requirement.  All DoD Components must maintain a requisition history and due-in file for each transaction processed.

		C4.2.18.2.  Expeditious Processing.  Requisitioners must expeditiously process transaction status and materiel receipts to requisition and due-in files to preclude the unnecessary generation of follow-ups.

	C4.2.19.  Special Army Single Stock Fund (SSF) Procedures for Image, Working, and Post-Post Requisitions and Authorization of Edit Action Codes (EACs) for Both SSF  and non-SSF Army Activities.  The following procedures are restricted to use by the Army on an intra-Service basis.

		C4.2.19.1.  These procedures include Army-unique data elements required to accurately process transactions in the Army wholesale system that originate from the Army retail system for SSF activities.  For both Army retail replenishment orders for authorized stock listed items and for dedicated customer orders for non-stock listed items, an image of the order containing a special EAC, management code, and date generated is created and passed to the wholesale system.  For these replenishment and dedicated customer orders, the EAC indicates that the order is to be held until either post-post issue requisitions are received equaling the image requisition quantity or a live/working requisition is received for the total or residual quantity of the image requisition.  Additionally, customer/consumer orders for authorized stock listed items that cannot be filled by the retail system are backordered at the retail level and an image of the consumer requisition containing an EAC, management code, and date generated is created and passed to the wholesale system.  For these backordered consumer requisitions, the EAC indicates that the order is to be held until either post-post issue requisitions are received equaling the image requisition quantity, or a cancellation is received.  Based on business rule parameters, these EAC codes facilitate the Army process, that searches for assets at multiple retail levels, prior to requiring a wholesale asset search to fill the retail and consumer level requisitions.  The post-post issue requisition also contains an EAC, management code, and date generated.  Additionally, the post-post requisition contains the SSF routing identifier code (RIC) of the activity issuing the assets and codes indicating the ownership, purpose and condition of these assets, as well as a suffix code, if it is only a partial issue of the image requisition quantity.  The following are the types of requisitions included in this process:

			C4.2.19.1.1.  Image Request Order Number Requisition.  An image of the customer’s original requisition containing an EAC, management code and the date generated date is submitted by the SSF site to the Army wholesale source of supply.  Upon receipt, the wholesale source of supply builds a document control file, creates a demand record, and freezes the requisition on backorder. The only action that can clear the frozen backorder is a post-post requisition or a cancellation request from the SSF site.

			C4.2.19.1.2.  Image Document Order Number Requisition.  An image of the original replenishment requisition containing an EAC, management code, and the date generated is submitted by the SSF site to the Army wholesale source of supply.  Upon receipt, the wholesale source of supply establishes a document control file with a requisition quantity control, creates a demand record, and takes no further action until receipt of a post-post or working requisition.

			C4.2.19.1.3.  Working Document Order Number Requisition.  Upon receipt of a working document order number requisition by the wholesale source of supply, action will be taken to support the requisition quantity.  The document number on both the working and image requisitions are the same; however, the working requisition does not contain an EAC or management code.

			C4.2.19.1.4.  Image Dedicated Requisition.  An image of a dedicated requisition containing an EAC, management code, and the date generated is submitted by the SSF site to the Army wholesale source of supply.  Upon receipt, the source of supply establishes a document control file with a requisition quantity control, creates a demand record, and takes no further action until receipt of a post-post or working requisition.

			C4.2.19.1.5.  Working Dedicated Requisition.  Upon receipt of a working dedicated requisition by the wholesale source of supply, action will be taken to support the requisition quantity.  The document number on both the working and image requisitions are the same; however, the working requisition does not contain an EAC or management code.

			C4.2.19.1.6.  SSF Post-Post Requisition.  A post-post requisition containing an EAC, management code and storage site RIC is submitted by the SSF site to the Army wholesale source of supply when assets are issued from an SSF site in support of a previously provided image requisition.  Upon receipt, the source of supply creates internal issue transactions and creates an audit trail.

		C4.2.19.2.  Post-Post Requisition Processing.  When the requisition is satisfied by an SSF site, the wholesale system will receive a post-post requisition containing a special EAC and management code, as well as the RIC of the SSF site issuing the assets, and codes indicating the ownership, purpose, and condition of these assets.  If the post-post issue requisition is for a partial quantity, it will also contain a suffix code.  The wholesale system may receive post-post requisitions with the same document number and suffix code, but with different storage activity RICs.  These will not be considered duplicates.  Based upon receipt of the post-post requisition, the wholesale system will internally generate a materiel release order (MRO), materiel release confirmation (MRC) and a materiel receipt acknowledgment (MRA).  The wholesale system receives post-post requisitions in order to record shipments and generate appropriate bills.

		C4.2.19.3.  Working Requisition Processing.  If the SSF site can fill the total requisition through post-post issues, the wholesale source of supply will not receive a working requisition.  However, if the SSF site is unable to satisfy the total demand quantity of the requisition, the wholesale site will receive either a working requisition for the residual quantity or a cancellation on the same document number as the image requisition.  Upon receipt of the working requisition the wholesale source of supply will initiate normal support actions.  Any actions taken by the wholesale source of supply on the working requisition will always begin with Suffix Code L.  The total quantity of all post-post requisitions and all working requisitions received on a single document number should not exceed the quantity on the original image requisition.

		C4.2.19.4. EAC Authorization.  In addition to the use of the EAC in the above SSF procedures, for both Army SSF and non-SSF activities, the EAC is authorized to be used for requisition reinstatement and other varied purposes.

	C4.2.20.  Requisitioning in Support of an Inter-service Maintenance Agreement[footnoteRef:14]  [14:  Refer to ADC 1176.  Staggered implementation of SCC for requisitions authorized.] 

		C4.2.20.1.  When scheduling a reparable item for organic maintenance under a Depot Maintenance Inter-Service Agreement (DMISA) or comparable inter-Service support agreement, based on the repair schedule, the maintenance activity will requisition the reparable item from the Principal (materiel) owner using a DLMS 511R Requisition. All requisitions will cite Advice Code 2J (fill or kill), and the appropriate supply condition code.  Requisitions will cite Project Code 3AB (repair and return under maintenance agreement) or 3BB (repair under maintenance agreement).  When requesting specific assets, maintenance activities may cite the supply condition code (SCC) applicable to the reparable item requested.  Authorized SCCs include D, F, G, Q***,******and U***.  Requisitions for induction of a Product Quality Deficiency Report (PQDR) exhibit for warrantied maintenance will cite SCC Q.

		C4.2.20.2.  In response to requisitions citing Project Codes 3AB or 3BB, the Principal will direct release of the reparable item from the storage activity to the repair agent.  The Principal will establish a due-in and provide a pre-positioned materiel receipt (PMR) to the repair agent to ensure the item is receipted under the correct ownership (refer to Chapters 12 (PMR) and 13 (Receipt) in this volume).

		C4.2.20.3.  To preclude billing by the materiel owner, the requisition will also contain the following data elements to denote free issue. For requisitions submitted to:

			C4.2.20.3.1.  Air Force:  For Air Force principals (RIC TO of F**), use Project Code 3BB.

			C4.2.20.3.2.  Navy:  For Navy principals (RIC-TO of NRP), use N00391 in rp 45-50, Signal Code B and Fund Code 26. 

			C4.2.20.3.3.  Army: For Army principals (RIC-TO A** or B**), use Project Code 3BB, Fund Code GM, and Signal Code D or M.

			C4.2.20.3.4.  Marine Corps:  For Marine Corps principals (RIC-To MPB), use Project code 3BB.

		C4.2.20.4.  Organic maintenance activities operating under a DMISA or comparable inter-Service support agreement will requisition nonconsumable repair parts required for a maintenance action using Project Code 3AD.  Maintenance activities will direct reparable item requisitions to the Principal whose assets are intended are to be used for the repair (rather than to the source of supply).  Directing requisitions to the Principal ensures appropriate actions are taken.  

			C4.2.20.4.1.  Directing requisitions to the Principal precludes rejection of the requisition because the repair agent may not be a registered user of the materiel.  

			C4.2.20.4.2.  Passing the requisition to the Principal reduces financial losses that would be incurred to purchase new materiel while previously purchased materiel is sitting in the Principal’s inventory.  This will reduce inventory balances as intended at the designated Principal, and does not unnecessarily draw down inventory at the supply source.

			C4.2.20.4.3.  Requisitioning from the Principal eliminates the possibility that the source of supply will satisfy the requisition with a substitute item which may not be best suited for the repair. 

			C4.2.20.4.4.  This method of requisitioning facilitates accurate demand history capture at the source of supply (where it would otherwise be overstated) and improves forecasting by the Principal (where it would otherwise be understated).

		C4.20.5.  Organic maintenance activities will direct consumable item requisitions to the source of supply.  Project Code 3AD does not apply.  DAAS will process requisitions under MILSTRIP routing rules or by Service agreement.

		C4.20.6.  DAAS will pass requisitions (DIC A0_), modifications (DIC AM_), and follow-ups (DIC AT_) containing Project Codes 3AB, 3AD, and 3BB to the designated recipient (rather than routing to the source of supply).

	C4.2.21.  DoDAAC Authority Code Edits.  Requisitions will be prepared using valid DoDAACs for the purpose(s) intended.  DoDAACs designated as the requisitioner, bill-to, or ship-to activity will be validated based upon the authority code assigned to each DoDAAC in the DoD Activity Address File.  Refer to DAAS edit of incoming requisitions below for edit rules.

C4.3.  RETRANSMITTED REQUISITIONS.  Use the FROM address in the requisition to identify the activity passing and/or referring the requisition and TO address to identify the activity to receive the requisition.  In addition, indicate the applicable suffix code of the retransmitted requisition if the quantity is less than the original requisition quantity, and the appropriate demand code.  Indicate the date of receipt of the demand as recorded by the initial source of supply when retransmitting requisitions to another source of supply.  Use Special Requirements Code 888 to identify retransmitted requisitions generated from backorder releases submitted only to the SMCA.

C4.4.  REQUISITION CANCELLATIONS

	C4.4.1.  General

		C4.4.1.1.  Requests.  The requisitioner, monitoring activity, the DoD Component, and authorized command elements may request cancellation of previously submitted requisitions by using the DLMS 869C, Cancellation.  The activity initiating the cancellation action, if other than the requisitioner, must advise other interested activities of the cancellation action.  Send single line-item cancellations to the last known source of supply holding the applicable requisitions.  Under normal circumstances, cancellation requests represent a discontinued need of specific items and quantities.  Do not deobligate funds or update individual due-in records until you receive status from the source of supply confirming cancellation.

		C4.4.1.2.  Receipt from Contractor.  Do not submit single line-item cancellations when a CONUS activity has received notice of shipment for materiel from a contractor's facility or a depot.

		C4.4.1.3.  Minimum Value Item.  Do not submit single line-item cancellations when an OCONUS activity has received shipment status and the line-item value of the cancellation is less than $200, or the materiel was shipped by air mail, or parcel post, or the materiel was shipped more than 10 calendar days by air shipment to an aerial port of embarkation (APOE), or 45 calendar days by surface shipment to a water port of embarkation (WPOE).

		C4.4.1.4.  Conditions Not Excluded.  Submit cancellations for conditions not excluded when there is no longer a need for a requisitioned quantity regardless of line-item dollar value or status.  Such submissions will authorize the source of supply to properly adjust demands, when appropriate, and initiate cancellation action, when feasible.

		C4.4.1.5.  Status Code BV.  Sources of supply may initiate billings to requisitioning activities for transportation charges and/or contract termination costs even though the source of supply is able to effect cancellation/diversion if requisitions are assigned Status Code BV.  

		C4.4.1.6.  Disposition of Materiel for Failed Cancellations.  The consignee, the appropriate commander, or Service headquarters is responsible for the utilization or disposition of materiel that cannot be canceled or diverted to an alternate consignee.

		C4.4.1.7.  Materiel Shortages.  Requisitioning activities must submit a new requisition with a new document number, citing appropriate issue PDs, whenever shortages occur for materiel previously canceled or rejected.  Do not submit requests to reinstate previously canceled or rejected requisitions to sources of supply.

	C4.4.2.  Reserved

C4.5  REQUISITION MODIFICATIONS

	C4.5.1.  Requesting Modifications.  The requisitioner, control office, or monitoring activity may request the modification of previously submitted requisitions using the DLMS 511M, Requisition Modification.  Any activity initiating a requisition modification will notify other interested parties of such action, especially if the activity initiating the modification is other than the requisitioner.  A requisition modifier will be prepared by originating activities completing all prescribed data element entries for a requisition.  Send the requisition modification to the last known source of supply.  Requisition modifications may be used to change/modify the following fields in an original requisition document:

		C4.5.1.1.  Non-GFM Requisitions

			C4.5.1.1.1.  Ship-To and/or Bill-To Address(es)

			C4.5.1.1.2.  FMS Offer and Release Option Code

			C4.5.1.1.3.  FMS Freight Forwarder

			C4.5.1.1.4.  Treasury Symbol Number/Fund Purpose Code

			C4.5.1.1.5.  Project Code

			C4.5.1.1.6.  Special Requirements Code

			C4.5.1.1.7.  PD

			C4.5.1.1.8.  RDD or RDP

			C4.5.1.1.9.  Advice Code

			C4.5.1.1.10.  Ultimate Recipient Code

			C4.5.1.1.11.  Transportation Priority Code

			C4.5.1.1.12.  Media and Status

			C4.5.1.1.13.  Signal Code

			C4.5.1.1.14.  Distribution Code

			C4.5.1.1.15.  Fund Code

		C4.5.1.2.  GFM Requisitions

			C4.5.1.2.1.  Project Code

			C4.5.1.2.2.  PD

			C4.5.1.2.3.  Advice Code

			C4.5.1.2.4.  RDD

			C4.5.1.2.5.  Media and Status Code

			C4.5.1.2.6.  Signal Code

			C4.5.1.2.7.  Distribution Code

			C4.5.1.2.8.  Fund Code

	C4.5.2.  Identifying Applicable Supply Actions.  Identify requisitions for which supply action must be continued during mass cancellation situations and submit modifications with Special Requirements Code 555 to the source of supply at the earliest possible date to ensure the continued processing of the requisitions.

	C4.5.3.  Pertinent Modification Data.  Only data on the modification transaction will be changed.  All other data will remain as stated on the original requisition.

	C4.5.4.  Modifying Codes.  When a requisition modifier is submitted to modify the ship-to and/or bill-to DoDAAC(s), signal code, or fund code, the DAAS DoDAAC authority code edits discussed in C4.10 will be reapplied.

C4.6.  REQUISITION INQUIRIES/REQUESTS FOR SUPPLY ASSISTANCE

	C4.6.1.  General.  Use DLMS 869A, Requisition Inquiry/Supply Assistance, to follow-up or request supply assistance to improve estimated shipping dates (ESD) over the dates indicated in the latest supply status transaction on previously submitted requisitions.  Use either DLMS 869A or DLMS 869F, Requisition Follow-Up, to follow up the latest supply transaction on previously submitted requisitions.  Management Code P will be perpetuated to all applicable supply status in support of BRAC IMSP.

	C4.6.2.  Follow-Ups.  Submit follow-ups to obtain the latest status for a previously submitted requisition.

		C4.6.2.1.  Follow-Up Format.  Requisition follow-ups can be accommodated in two formats.  DLMS 869A provides a streamlined requisition follow-up.  DLMS 869F Requisition Follow-up offers the additional capability of conveying all information provided on the original requisition (with the exception of quantity stratification by weapon system) so that the follow-up may act as a requisition if the inquiry is unmatched to the IMM’s data base.  When a DLMS 869F follow-up that may act as a requisition is submitted, it will be subject to the authority code edits of paragraph C4.10.

		C4.6.2.2.  Follow-Up Submission Criteria

			C4.6.2.2.1.  Delay Status Not On Hand.  Submit follow-ups when status data is not on hand to indicate a delay in receipt of materiel beyond the SDD or RDD or when the UMMIPS order and shipping time standard for receipt of materiel has elapsed.

			C4.6.2.2.2.  Receipt Status Not Received.  Send follow-ups to the source of supply where you sent the requisition if you have not received status indicating another activity is responsible for the demand.  When supply status has been received, direct the follow-up to the activity indicated as currently processing the requisition; for example, the last known source of supply.  The source of supply may follow up to a shipping activity on open MROs.

			C4.6.2.2.3.  Materiel Not Received.  Do not submit follow-ups after receiving shipment status evidencing completion of shipment unless you do not receive the materiel within normal transit time based on the date of the shipment as cited in the shipment status transaction.

		C4.6.2.3.  Follow-Up Submission Timeframes

			C4.6.2.3.1.  PD 01-08.  For PD 01-08 demands, submit follow-ups only after expiration of at least three calendar days from the date of the requisition or transaction date of the latest supply status.

			C4.6.2.3.2.  PD 09-15.  For PD 09-15 demands, submit follow-ups only after expiration of at least seven calendar days from date of the requisition or transaction date of the latest supply status.

	C4.6.3  Request for Supply Assistance

		C4.6.3.1.  Initiation.  Requisitioners may initiate requests for supply assistance only for PD 01-08 requisitions after receipt of supply status indicating an unacceptable delivery date.  Requests for supply assistance includes status of requisitions, timely supply of requirements, interchangeable and substitutable (I&S) items, release of cancellation or backordered requisitions, and diversion of materiel shipments.  Do not generate requests for supply assistance prior to the receipt of supply status indicating open status.  

		C4.6.3.2.  Submission

			C4.6.3.2.1.  Forward requests for supply assistance on previously submitted PD 01-08 requisitions to the source of supply processing the requirement.  Requests for assistance may be done by e-mail, message, letter, or telephone to the appropriate source of supply.  Telephone requests should not exceed seven lines; however, the limitation of items will be determined by the source of supply ability to record the items and initiate timely responses.  Include the urgently needed quantity (supply assistance may be requested for entire quantity requisitioned or a lesser quantity required for mission performance).

			C4.6.3.2.2.  DLA accepts supply assistance requests via the DoD FedMall requisition query function for open requisitions PD 01-08 with MILSTRIP Supply Status BB, BV, BZ, or BD.

			C4.6.3.2.3.  In addition to the above, the DLMS 869A, Supply Assistance request (BS108=AR) is designed to transmit requests electronically.  This is a DLMS enhancement that cannot be used without prior coordination to ensure that the receiving source of supply has implemented this business process using transaction exchange.  The DLMS format supports identification of point of contact information, identification of acceptable substitute items, alternative sources for the requested item, and a codified mission impact resulting from delay or lack of support for the required item:

				C4.6.3.2.3.1.  Code 1:  Inability to perform assigned mission for a classified project.

				C4.6.3.2.3.2.  Code 2:  Inability to perform assigned mission.

				C4.6.3.2.3.3.  Code 3:  Performance of assigned mission anticipated to be curtailed or stopped if materiel is not received within 15 days continental United States (CONUS) or 20 days other than continental United States (OCONUS).

				C4.6.3.2.3.4.  Code 4:  Mission performance below prescribed level of effectiveness and efficiency.

				C4.6.3.2.3.5.  Code 5:  A classified NMCS condition exists due to lack of required assets.

C4.7.  REQUISITION PROCESSING AND RELATED ACTIONS.  Sources of supply receiving requisitions, follow-ups, modifications, cancellations, and/or supply assistance requests will process such transactions using these procedures.

	C4.7.1.  General

		C4.7.1.1.  Verification.  Sources of supply will validate the data elements and codes in these transactions and accomplish changes, continue processing action, or reject with the appropriate status code using DLMS 870S, Supply Status.  Rejection of transactions will be done only after an attempt has been made to correct the questionable data element or code.  If rejection action is a result of more than one data element or code, and no other reject status code applies, reject using Status Code CA.

		C4.7.1.2.  Batch Processing.  When sources of supply and storage activities utilize the sequential (or batch) method of processing and do not possess real time processing capability, such processing must be done as frequently as necessary in order to meet UMMIPS time standards, or specific RDD for subsistence requisitions as applicable.  In every such cycle, cancellation requests (including automatic cancellation initiated by the source of supply) and Material Obligation Validation (MOV) reconciliation requests will be processed prior to backorder releases and new requisitions.  Demands will be sequenced as follows:

			C4.7.1.2.1.  Priority Designator.

			C4.7.1.2.2.  OSD/the Chairman of the Joint Chiefs of Staff project codes.

			C4.7.1.2.3.  Special Requirements Code 999 and PD 01, 02, or 03.

			C4.7.1.2.4.  Special Requirements Code N (NMCS), E (ANMCS), or 555 and PD 01-08.

			C4.7.1.2.5.  Requisition document number date.

			C4.7.1.2.6.  RDP, if later than the computed SDD--conventional ammunition only.

		C4.7.1.3.  Backorders.  Backordered requirements will be merged (in the above sequence) with all new transactions in any requisition processing cycle in which additional assets become available; for example, receipts of materiel and debit on hand adjustments.

		C4.7.1.4.  Receipt Processing.  Processing points will record the date of receipt of each requisition received.  The date of receipt enables sources of supply to compute the requisition submission time.  The computation will be made by subtracting the date in the demand transaction from the date received.  The submission time provides a basis for the ICPs to measure the first cycle segment of supply effectiveness.

		C4.7.1.5.  Document Numbers.  The document number, and a suffix, when applicable, will be used as a basis for determining duplicate transactions.  The recipient will disregard all duplicate transactions.

	C4.7.2.  Effect of Priority Designator on Requisition Processing

		C4.7.2.1.  Assigning PDs.  Each requisition must contain a PD assigned by the requisitioning activity, which will not be changed by processing points except in the following conditions:

			C4.7.2.1.1.  Special Requirements Code 999 is present, requisition is for U.S. Forces, and the PD is not 01, 02, or 03. The source of supply will enter PD 03 and send Status Code BK.

			C4.7.2.1.2.  An OSD/Joint Chiefs of Staff project code is present, but the PD is not 01-15. The source of supply will cite PD 03 and send Status Code BK.

			C4.7.2.1.3.  Special Requirements Code N or E is present, and the PD is not 01 – 15. The source of supply will enter PD 08 and send Status Code BK.

			C4.7.2.1.4.  Special mass cancellation coding 555 is present and the PD is not 01-15. The source of supply will enter PD 08 and send Status Code BK.

			C4.7.2.1.5.  Special Requirements Code 777 is present and the PD is not 01 – 15. The source of supply will enter PD 08 and send Status Code BK.

			C4.7.2.1.6.  RAD is present and the PD is not 01-15. The source of supply will enter PD 15.

			C4.7.2.1.7.  Extended RDD is present and the PD is other than 09-15. The source of supply will enter PD 15 and send Status Code BK, and process.

			C4.7.2.1.8.  Work stoppage indicator is present and the PD is not 01-08. The source of supply will enter PD 08 and send Status Code BK, and process.

			C4.7.2.1.9.  Service Code is B, D, K, P, or T and Special Requirements Code is N, E, 555, or 777 and Type of Assistance is not U or V. The source of supply will blank the special requirements code and process using the priority.  Type of assistance is identified as the sixth position of the SA identification data portion of the document number or separately in the LQ segment.

			C4.7.2.1.10.  For all other conditions, if the PD is not 01 - 15, the source of supply will enter PD 15.

		C4.7.2.2.  Time Standards.  The assigned PD dictates the precedence of internal supply processing actions (such as, from the receipt of a transaction until release to transportation) and determines the SDD.  Mandatory time standards for processing of transactions are covered in DoDM 4140.01, Appendix 8.  For subsistence requisitions, the assigned RDD is the primary processing criteria, while the assigned PD dictates the precedence of internal supply processing action for requisitions reflecting identical RDDs.  Time standards indicated in UMMIPS do not apply to subsistence requisitions.

		C4.7.2.3.  IMM Control Levels.  On occasion, available assets may be insufficient to satisfy all current demands and backorders for specific items.  The IMM will reserve assets of such critical items through the use of item control levels and criteria that will restrict issue to specific categories of requirements only, (i.e., those within designated ranges of PDs, Joint Chiefs of Staff approved projects, or firm commitments for delivery of materiel to SA recipients).  Control levels will be established for IMMs to reserve stocks for issue only for PD 01-03.  These requirements will be satisfied by issue to zero stock balance of serviceable stocks.  Control levels may be established at the discretion of the IMM to reserve a greater level of stocks that may not be issued for PD 09-15 requirements.

		C4.7.2.4.  Source of Supply Control Levels.  Control levels will also be established by the source of supply to restrict issues against requisitions for the initial fill of PWRMS consumable item requirements to ensure that:

			C4.7.2.4.1.  Availability Below Approved Force Acquisition Objective (AFAO).  Assets available below the AFAO are not issued against requisitions for nonreimbursable PWRMS requirements regardless of the PD.

			C4.7.2.4.2.  Availability Below Reorder Point.  Assets available below the reorder point (ROP) are not issued against requisitions for nonreimbursable PWRMS requirements that contain a PD of 11-15 during initial processing of the requisition.  Later processing of such requisitions is prescribed in paragraph C4.7.5., below.

		C4.7.2.5.  OSD/the Chairman of the Joint Chiefs of Staff Project Priority.  These projects, when so designated, and PD 01-03 requisitions containing Special Requirements Code 999, will be ranked above all other requisitions with the same PDs for processing purposes.  Special Requirements Code 999 requisitions and related transactions will receive special attention to provide for expedited processing actions.

		C4.7.2.6.  Releasing Demands.  When system-wide inventory levels do not permit positive supply action on all requisitions within a given PD, supply procedures will provide for a release of demands containing the specifically designated OSD/Joint Chiefs of Staff project codes and Special Requirements Code 999 as the respective most urgent.  PD 01-08 requisitions, including FMS requisitions, containing Special Requirements Code 555 in the RDD field and other requisitions/materiel obligations, will be processed for release as prescribed in paragraph C4.7.1.2.

	C4.7.3.  Source of Supply Processing of Requisitions with Advice Code 2D, 27, or 29.  Sources of supply will edit all requisitions containing Advice Codes 2D, 27, and 29 to determine if an increase in the requisition quantity to the quantity unit pack is less or more than $5.  If less than $5, the source of supply will disregard the advice code in the requisition.  If $5 or more, the source of supply will honor the advice code and process the requisition for the exact quantity requested.  When a quantity adjustment is made using the above criteria, the source of supply will use Status Code BJ to notify the customer of the quantity adjustment.

	C4.7.4.  Source of Supply Processing of Requisitions for Quantities that Exceed the Normal Demand.  The source of supply may request verification of requisitions that show quantities that exceed normal demands or quantities that appear to be excessive or in error before taking positive supply action.  When the source of supply determines that the requisitioned quantity needs to be verified, the source of supply will generate a DLMS 517M, Materiel Obligation Validation, to request verification of the quantity.  The source of supply must indicate a response due date in the quantity verification inquiry, normally 30 calendar days for U.S. Forces and 75 calendar days for SA customers.  The organization verifying the requisitioned quantity will send a response to the source of supply by the response due date indicated in the quantity verification inquiry; otherwise, the source of supply will automatically cancel the requisition with Status Code D3.  The quantity in the response must be the actual quantity required.  If the quantity is less than the original requisitioned quantity, the difference will be canceled with Status Code BQ.  If the quantity field contains zero, the entire requisition will be canceled with Status Code BQ.  Quantity increases are not authorized.

	C4.7.5.  Source of Supply Processing of PWRMS Requisitions

		C4.7.5.1.  General.  Sources of supply, except GSA, will process funded and unfunded requisitions for the initial fill of PWRMS consumable item requirements using the criteria established below.  GSA will process only funded requisitions for PWRMS requirements and does not differentiate between those requisitions and others.

		C4.7.5.2.  Processing Criteria.  Upon receipt of PWRMS requisitions for the initial fill of consumable item requirements (Demand Code O and Project Code 3AA), the source of supply will determine asset availability in excess of the AFAO and:

			C4.7.5.2.1.  Sufficient Assets Available.  If sufficient assets are available in excess of the AFAO to satisfy the total requisition quantity, the total requisition will be processed as free issue.

			C4.7.5.2.2.  Excess Assets.  If the assets available in excess of the AFAO are not sufficient to satisfy the total requisition quantity, then the portion of the requisition quantity equal to the quantity of assets available in excess of the AFAO will be processed as free issue and the balance of the requisition quantity will be processed as follows:

				C4.7.5.2.2.1.  When the source of supply determines that assets are not available in excess of the AFAO, the basis of unit price code in the PO1 segment of the PWRMS requisition for the initial fill of consumable item requirements (Demand Code O and Project Code 3AA) will be checked and:

				C4.7.5.2.2.2.  If free issue, the unfilled quantity on the requisition must be rejected.  The rejection will be accomplished under Status Code CB since all unfunded PWRMS requisitions must be processed as fill or kill.

				C4.7.5.2.2.3.  If a basis of unit price code is not identified, the PWRMS requisitions will be processed as containing Advice Code 2L and the PD must be checked to determine further processing routines.

			C4.7.5.2.3.  PD 01-03 PWRMS Requisitions.  Except for subsistence, PWRMS requisitions with PD 01-03 will be processed for issue using UMMIPS source of supply processing standards.  Subsistence requisitions must be processed to meet a specific RDD.

			C4.7.5.2.4.  PD 11-15 PWRMS Requisitions.  Except for subsistence, PWRMS requisitions with PDs 11-15 will be issued from assets available above the ROP or equivalent.  When assets above the ROP or equivalent are not available to satisfy the requisitioned quantity, the unfilled quantity will be placed on backorder and the appropriate supply status will be provided with an estimated shipping date (ESD) equal to one procurement lead time.  Backordered PWRMS requisitions with PDs 11-15 must be released from backorder at the end of the procurement lead time or when sufficient stocks are available above the ROP.  (PWRMS requisitions with PDs 04-10, when received, will be processed in the same manner as PD 11-15 requisitions.)

	C4.7.6.  Source of Supply Processing of RDP Requisitions (Conventional Ammunition Only)

		C4.7.6.1.  Earliest Delivery Date within Standard UMMIPS Timeframe.  Requisitions with an RDP that has an earliest delivery date that is within the standard UMMIPS timeframes for the PD must be processed using the time period established for that PD.

		C4.7.6.2.  Earliest Delivery Date Outside Standard UMMIPS Timeframe.  Requisitions with an RDP that has an earliest delivery date that is longer than the standard UMMIPS timeframes for the PD will not be placed on backorder.  If stock is not available, the requisition will be referred or rejected back to the customer.  If stock is available, an MRO will be issued to the storage facility.  The shipping activity will establish necessary control mechanisms to provide timely shipment to the customer.

		C4.7.6.3.  Rejecting Late Requisitions.  Requisitions that cannot be delivered within the RDP will be rejected with Status Code CB.

		C4.7.6.4.  SA Deliveries.  RDP procedures do not apply to SA requisitions.

	C4.7.7.  Source of Supply Processing of Requisitions for Nonconsumable Items from a Nonregistered User.  Process nonconsumable items from nonregistered users according to the following criteria:

		C4.7.7.1.  PD 01-08.  If the PD is 01-08, process the requisition for issue and provide Status Code DS to the requisitioner.

		C4.7.7.2.  PD 09-15.  If the PD is 09-15 and assets are available above the ROP, process the requisition for issue and provide Status Code DS to the requisitioner.

		C4.7.7.3.  Assets Not Available.  If the PD is 09-15 and assets are not available above the ROP, reject the requisition with Status Code CC or CN, as appropriate.

	C4.7.8.  Source of Supply Processing of Subsistence Requisitions.  Do not backorder subsistence requisitions.  Process subsistence requisitions to meet the specific RDD.

	C4.7.9.  Source of Supply Processing of Requisitions with Management Codes 3, 9 and P.

		C4.7.9.1.  Requisitions with Management Code P.  Management Code P is only applicable to requisitions/requisition alerts submitted to DLA.  All other sources of supply in receipt of Management Code P will disregard and continue processing.  DLA will verify that the requisitioning activity is a BRAC IMSP industrial/maintenance sites.  If not, DLA will disregard the management code.[footnoteRef:15]  Where authorized, Management Code P will be recognized as a request for materiel sourced from an alternative source due to previous receipt of like materiel with product quality deficiency reported via PQDR.  DLA would apply unique logic applicable to the management code.  If the item being requested is managed as a direct vendor delivery (DVD), then the DLA forward-positioned buyer will process for procurement from a vendor other than cited on the PQDR if materiel is available to meet the (RDD).  If the item is managed as a stocked item, the request will be processed as one-time emergent request and the DLA forward-positioned buyer will process as a customer direct order.  In instances where the RDD cannot be met or the forward buyer is unable to locate an alternate vendor, the forward buyer will work directly with the engineer to satisfy the requirement. [15:  Expanded use for all DoD Components requisitioning from DLA is planned for future implementation (approximately 2014.)] 

		C4.7.9.2.  Requisitions with Management Codes 3 or 9.  Management Codes 3 and 9 are only applicable to requisitions submitted to DLA.  All other sources of supply in receipt of Management Code 3 or 9 will disregard and continue processing.  DLA will verify that the requisitioning activity is a BRAC Inventory Management and Stock Positioning (IMSP) industrial/maintenance site authorized to use these codes.  If not, DLA will disregard the management code.  Where authorized, Management Codes 3 and 9 will be recognized as a request for materiel sourced from an alternative storage location or new procurement, if stock is not available, due to previous receipt of materiel that did not support shelf life or continuous length requirements.  The prior requisition document number and the shipment suffix (if applicable due to a split shipment) will be used for cross reference to the original requirement and storage location.  This process is only applicable to materiel originally sourced from a co-located depot without physical inspection of the materiel.  The suitability for shelf life and length could not be determined until directed release by the Service owner at which time the storage activity would provide a denial citing Management Code 3 or 9, as applicable.  The DLA would apply unique logic applicable to the management code.  If the item is available in an alternative storage site, then a materiel release order would be sourced to that alternative storage site.  When no stock is available in the network, a new procurement action will be initiated.  The DLA ICP will also update an internal denial table to preclude other comparable requests from being sourced to the original storage activity until inventory balances have been reconciled.[footnoteRef:16] [16:   Refer to ADC 359, implementation date December 2010.] 

	C4.7.10.  Processing of Requisitions for Induction to Maintenance.

		C4.7.10.1.  Upon receipt of a DLMS 511R Requisition from maintenance for the purpose of inducting a reparable, the materiel owner will process the requisition on a 'fill or kill' basis, and direct the issue to the co-located storage activity.  If there are insufficient assets at the co-located storage activity, the requisition will be 'killed' for that portion of the requisition that cannot be issued.  No billing will be initiated on requisitions from maintenance activities for DMISA assets, when the requisition was submitted consistent with C4.2.18.2. requirements.

		C4.7.10.2.  The "Principal" system will interpret the DLMS 511R Requisition with Advice Code 2J (fill or kill) as “no substitution allowed” but will allow for a partial fill, (i.e., do not backorder unfilled quantity, or pass an MRO to other than the co-located storage activity).  The source of supply (Principal) will furnish the requisitioning activity (maintenance) DLMS 870S Supply Status using CB status for any unfilled quantity.	

		C4.7.10.3.  DLMS source of supply preparation of materiel release orders (MROs) to the co-located storage activity will be accomplished using the DLMS 940R.  

	C4.7.11.  Maintenance of Requisition History Records.  Sources of supply will retain requisition history records in a readily accessible format after the closing of requisition records by cancellation, rejection, or shipment to provide for responsive replies to requisition inquiries in accordance with DoDI 5015.02, DoD Records Management Program.

	C4.7.12.  Rejection of Requisitions.  Sources of supply will provide supply status to requisitioning and status organizations identified in the requisition or follow on transactions, as notices of requisition rejection with the reason for such action indicated by an appropriate status code.

	C4.7.13.  Release of Materiel Obligations.  A materiel obligation is that quantity of an item requisitioned that is not immediately available for issue, but is recorded as a stock commitment for future issue.  Sources of supply will establish procedures for the partial release of the materiel obligation when assets are insufficient to satisfy the entire demand consistent with the PD and delivery requirements of the requisition involved.

	C4.7.14.  Preparing MROs

		C4.7.14.1.  Originator.  MROs, DLMS 940R, Materiel Release, are prepared by the source of supply as a result of processing requisitions against inventory records and determining that materiel is available.  MROs are used as a directive for release and shipment of materiel from stock.  

			C4.7.14.1.1  MROs directing shipment of requisitioned GFM will perpetuate contract data to include the procurement instrument identifier (PIID) authorizing GFP.  When GFM is authorized under a PIID call/order number (F in 9th position), provide the value in the PIID field.[footnoteRef:17]  Include the CLIN when available and directed by the authorizing Component.  Contract data will be provided by the source of supply for pushed GFM not initiated by a requisition. [17:  Use the legacy PIIN pending transition to the PIID.  When GFM is authorized under a PIIN, include the legacy four-position call/order number associated with the PIIN when available and directed by the authorizing Component.  Refer to ADC 1161A.] 

			C4.7.14.1.2.  MROs directing shipment of reparables for induction for commercial maintenance will include the PIID authorizing GFP, and the call/order and CLIN when available.

			C4.7.14.1.3.  MROs directing shipment of GFP in contractor custody will include the PIID authorizing GFP, and the call/order and CLIN when available.

			C4.7.14.1.4.  MROs directing return of discrepant/deficient materiel to vendors at vendor expense will include identification of the carrier and the carrier account number. ***When directing materiel release orders to DLA, the materiel owner ICP may include the distribution center number (DCN), provided by the storage activity via the SDR process.***

			C4.7.14.1.5.  MROs directing the return of PQDR exhibits ***may***include ***both the DCN provided by the storage activity and*** the PQDR report control number (RCN), if available.[footnoteRef:18]  [18:  ADC 1169, DLA Distribution Center Denial Scenarios Associated with Product Quality Deficiency Report (PQDR) Exhibits.  ] 

			C4.7.14.1.6.  MROs should perpetuate customer point of contact information provided in requisition or requisition-related transactions.

			C4.7.14.1.7.  MROs for the purpose of ship-in-place (also known as ship-to-self) must include a Ship-To-DoDAAC matching the custodial activity performing the transfer.  A PMR is mandatory for every ship-in-place request.  Both the MRO and the PMR must have the same document number.  The lack of PMR will result in MRO denial.  Additional requirements for the ship-in-place process are available in Chapter 7.

***C4.7.14.1.8. MROs directing the return of SDR exhibits will include the SDR distribution center number (DCN), if available.***

		C4.7.14.2.  Advice Code 2T.  Requisitions or MROs that contain Advice Code 2T and do not contain an RDD will be processed under the assigned PD without regard to the advice code.

		C4.7.14.3.  Inter-Service Ownership Transfer of Ammunition/Ammunition-related Materiel.  When used for inter-Service ownership transfers of non-Single Manager for Conventional Ammunition (SMCA) owned ammunition and ammunition-related materiel stored in a SMCA storage facility with no physical movement of materiel or billing, the MRO will contain Signal Code M indicating a free issue.  The MRO will also include the associated data required to accomplish the transfer including the old (from) ownership code associated with the service transferring ownership, the RIC of the Service receiving ownership, and the new/gaining (to) ownership code associated with the Service receiving ownership.  Pending transition to DLMS discrete data enhancements, the ownership to/from and new owner RIC will be identified in the supplementary address/supplemental data field beginning with Service/Agency Code Y (see the Appendix 7.9, Supplementary Address/Supplemental Data, for proper sequencing of these data elements into a single, concatenated field).  The storage activity will update the custodial/accountable records for the materiel and quantity identified to reflect the new ownership code and RIC of the Service receiving ownership.  No shipment status will be provided.  See procedures in DLM 4000.25, DLMS, Volume 2, Chapter 7) for inter-Service ownership transfer initiated by the SMCA for SMCA-owned materiel.

		C4.7.14.4.  Product Quality Deficiency Report (PQDR) Exhibit Tracking.  When directing release of a PQDR exhibit, the owner must include the PQDR Report Control Number (RCN) to facilitate exhibit tracking.  When the shipment is processed for issue, the shipping activity will perpetuate the PQDR RCN from the MRO to the shipment status. 	

		C4.7.14.5.  Expedited/Replacement Shipment Subsequent to Validated Supply Discrepancy Report.  MROs directing release of materiel in response to customer requests for expedited or replacement shipment due to shortage, non-receipt, wrong item, or comparable discrepancy/deficiency will be processed using the original document number and the next available suffix code to ensure separate billing and unique TCN assignment.  When requested by the customer via Supply Discrepancy Report, an Expedited Transportation Signal 777 may be assigned for the reshipment when the original special requirements code (legacy required delivery date (RDD) field is blank or all numeric (other than 444, 555, 777) or the RDD from the original requisition is less than 8 days from the current date.  Inclusion of the Expedited Transportation Signal 777 will normally cause the shipment to move by premium (air) transportation.  Shipments identifying Expedited Transportation Signal 777 are subject to air clearance processing whereby the air clearance authority may consult with the requisitioner to determine if the additional expense associated with air transportation is justified and potentially direct shipment movement by a surface mode.[footnoteRef:19] [19:  Refer to ADC 1091, SDRs Requesting Expedited or Replacement Shipment.] 

	C4.7.15.  Reserved

	C4.7.16.  Materiel Release Confirmation (MRC) 

		C4.7.16.1.  Purpose.  The MRC serves as advice from a storage site to the source of supply that initiated the MRO of supply action taken.  The MRC will be provided using DLMS 945A.  The MRC will include enhanced data content under DLMS to include:

			C4.7.16.1.1.  Both the TCN, when applicable, and a secondary transportation number, such as the small package carrier number, when this is applicable.

			C4.7.16.1.2.  Identification of the carrier when other than United States Postal Service (USPS) by Standard Carrier Alpha Code (SCAC).

			C4.7.16.1.3.  For OCONUS shipments made via Defense Transportation System (DTS), GBL/CBL, parcel post, and small package carrier shipments, specific identification of the Port of Embarkation (POE) or Consolidation and Containerization Point (CCP), the air terminal, water terminal, or CCP by applicable qualifier code.  (During MILSTRIP/DLMS transition, DAAS may substitute a generic terminal qualifier for MRC transactions converted from MILSTRIP legacy format transactions where the type of facility is unknown.)

			C4.7.16.1.4.  Capital Equipment.  In support of Financial Improvement and Audit Readiness (FIAR), accountability and management of capital equipment requires serialization data visibility.  Serial number tracking does not automatically apply to capital equipment.  The materiel owner will evaluate capital equipment items and assign the appropriate UIT designator code only when the item requires serial number tracking at the DoD level.  Submitters must prepare materiel release confirmation citing the applicable serial number(s) and include the UII when available.[footnoteRef:20] [20:  Refer to ADC 1198] 

		C4.7.16.2.  Source of Supply Follow-Up.  Sources of supply will follow up on storage activities at least once every 30 calendar days for unconfirmed MROs that are seven calendar days old for PDs 01-08 and 15 calendar days old for PDs 09-15.

		C4.7.16.3.  Materiel Release Confirmation Changes/Updates. In the event a shipment from the storage/shipping activity does not get lifted as originally intended (e.g., shipment is left off the truck), the storage/shipping activities that originate the DLMS 945A Materiel Release Confirmation will send an updated transaction with all of the changed transportation information to the ICP.  This ensures required visibility of the shipment information and enables the ICP to prepare an updated DLMS 856S Shipment Status when needed.  Examples of changed transportation information would include transportation method code, standard carrier alpha code (SCAC), ship date, bill of lading information, and tracking information.

			C4.7.16.3.1.  Preparation of the Materiel Release Confirmation Change/Update

				C4.7.16.3.1.1.  The materiel release confirmation change/update message will be identified by a unique code (W0602 = “RR”) in the transaction to flag it as an updated MRC.

				C4.7.16.3.1.2.  It will convey a new Shipping Date Change Reason Code (W0610 = “13” Shipping Location Handling) to advise the ICP that the updated MRC corrects erroneous content data (e.g., transportation data, pRFID data). 

				C4.7.16.3.1.3.  It will repeat the information from the original MRC, in addition to any changes to the original information.

				C4.7.16.3.1.4.  It will convey changed transportation information (e.g., transportation method code, standard carrier alpha code [SCAC], ship date, bill of lading information, and tracking information.)

				C4.7.16.3.1.5.  When the ICP sends a shipment status in response to a customer follow-up, based on an updated MRC, the DLMS 856S will be transmitted as an original transaction, thereby enabling legacy-based supply systems to receive the converted DIC AS_ from Transaction Services.  Do not use the BSN01 = “RR” and BSN07 = “A40” codes in this case, since the presence of these codes will indicate to Transaction Services not to convert these DLMS transactions to MILSTRIP legacy format.

				C4.7.16.3.1.6.  The ICP will adjust its Materiel Release Acknowledgment (MRA) follow-up timeframes based on the updated MRC in accordance with standard MILSTRAP business rules.

			C4.7.16.3.2.  Transaction Services Distribution of MRC Change/Update.  Transaction Services will route the MRC change/update to the ICP per standard business rules for distribution of MRC messages. Transaction Services will not distribute the MRC change/update to DLSS-based recipients. 

			C4.7.16.3.3.  Use of the MRC Change/Update by the ICP.  The value of this transaction to the ICP is to provide corrected transportation data, enabling it to prepare an updated shipment status message.  DLMS compliant systems should handle the updated transactions as the official MRC in their application, since they carry the corrected data.

	C4.7.17.  Storage Activity Denial or Rejection of Materiel Releases

		C4.7.17.1.  Preparation.  Materiel Release Denials (MRD), DLMS 945As, are prepared by storage sites and sent to the source of supply that initiated the MRO as notification of negative action on the MRO and will show the quantity denied and the appropriate management code. 

		C4.7.17.2.  Delivery Status.  If the storage activity cannot meet the delivery timeframe specified by the RDP, the storage activity will use the materiel release advice to provide Status Code CB to the source of supply.  The source of supply will provide this status advice to the eligible status recipients (applies to conventional ammunition requisitions only).

		C4.7.17.3  Storage Activity Denials of Materiel Releases for Induction to Maintenance.

			C4.7.17.3.1.  MRDs prepared under paragraph C4.7.10. will be used to provide a negative response to source of supply (Principal) initiated MROs directing release of a repairable asset for maintenance action.

			C4.7.17.3.2.  If the storage activity cannot provide the reparable asset for maintenance action in response to directed release, the source of supply (Principal) will provide supply status using CB status to advise the requisitioning activity (maintenance) that the asset is not available for induction.

		C4.7.17.4.  Storage Activity Denials for ***SDR and*** PQDR Exhibits.[footnoteRef:21]   [21:  ADC 1169, DLA Distribution Center Denial Scenarios Associated with Product Quality Deficiency Report (PQDR) Exhibits] 

			C4.7.17.4.1.  ***S***torage activities will prepare the DLMS 945A Materiel Release Denial and send it to the source of supply for ***SDR and***PQDR exhibits when the MRO containing the ***SDR DCN or***PQDR RCN does NOT match any of the ***DCNs or*** RCNs on the storage activity ***accountable record***.

			C4.7.17.4.2.  When the DLMS 940R MRO contains the ***SDR DCN or*** PQDR RCN and the ***DCN or*** RCN DOES match a ***DCN or*** RCN on the storage activity ***accountable record***, but the ***DCN or*** RCN in the bin location is not the expected ***DCN or*** RCN for the MRO, the storage activity will prepare a DLMS 945A MRD.

	C4.7.18.  Component-Owned Stocks Centrally Managed and Stored by DLA under Memorandum of Agreement

		C4.7.18.1.  The following procedures have a limited and restricted applicability controlled by a Memorandum of Agreement (MOA) between DLA and the requesting DoD Component.  Upon request by a DoD Component and agreement by DLA, DLA will centrally manage Component-owned stocks within the DLA distribution system.  All instructions to storage activities relative to the Component-owned stocks accepted under the MOA must originate from the owning ICP as the sole source authorized to direct delivery, issue, or other disposition of stock.  Component-owned stocks accepted under the MOA for central management by DLA will be commingled with like DLA-owned stocks. 

		C4.7.18.2.  To establish assets controlled by the DLA ICP under the MOA, the DoD Component may initiate an “in-place” sale.  To accomplish this, the DoD Component requisitions materiel to be centrally managed by DLA, establishing the Component-owned assets on the DLA records.  Ownership changes from DLA to the DoD Component, but DLA maintains item management control and continues to store the item in a DLA Distribution Depot.  The DLMS 511R, Requisition, must contain the preferred depot DoDAAC for stock to be commingled and Advice Code 8D.  The DLA ICP internally produces and posts the DLMS 940R, Materiel Release, (which is not actually sent to and from depot) and uses a DLMS 867I, Issue (DoD Activities), to drop and a DLMS 527R, Materiel Receipt – Other Than Procurement Instrument Source (DoD Activity) to post assets to the DLA ICP inventory record under Component-ownership.  An image of the DLMS 527R, Materiel Receipt – Other Than Procurement Instrument Source (DoD Activity) will also be sent to the Component ICP for recording the financial receipt.  Normal procedures will be followed for billing the reimbursable in-place sale.

		C4.7.18.3.  To direct shipment of these assets, the DoD Component must send a DLMS 511R, Requisition, to the DLA ICP to perform item management.  To relate the requisition to Component-owned assets, the following entries are mandatory in the source document:  Advice Code 2J; DLA Distribution Depot to indicate the storage location from which shipment of Component-owned materiel is to be made; ownership code; and condition code of the materiel.

		C4.7.18.4.  Requisitions created by organizational elements other than the Component ICP and sent to the Component ICP for approval will be forwarded to the DLA ICP using DLMS 511R, Referral Order.  Mandatory entries prescribed in paragraph C4.7.18.3 for requisitions also apply to referral orders.

		C4.7.18.5.  DLA will process a requisition or referral order and create a DLMS 940R, Materiel Release.  Additionally, DLA will produce and forward a DLMS 867I, Issue (DoD Activities), to the Component ICP for the issue quantity dropped from the DLA inventory records.  Quantities not available will be rejected to the Component ICP using Status Code CB.

		C4.7.18.6.  In the event a warehouse denial occurs, the distribution depot will report the denial in the normal manner.  DLA will send a DLMS 867I, Issue (DoD Activities), reversal and a DLMS 947I, Inventory Adjustment – Decrease (Physical Inventory), to the applicable Component ICP.  Requisition documents will not be reinstated for continued supply action.

		C4.7.18.7.  Under the MOA, the DoD Component assets may be issued directly to DLA assembly points.  The DLMS 511R, Requisition, must include Advice Code 8L; the depot to ship from, the DLA assembly point DoDAAC, Signal Code M, ownership code, and condition code.  DLA will process a requisition in this format and create the MRO.  Additionally, DLA will produce a DLMS 867I, Issue (Assembly/Disassembly/Conversion/Modification), and post to the DLA ICP records.  An image of the DLMS 867I will be sent to the Component ICP.

		C4.7.18.8.  To accomplish a redistribution action of Component-owned assets between DLA depots under the MOA the following procedures apply.  These actions will be limited to a dual ownership change between the DLA ICP and the Component ICP.  That is, no materiel is actually moved; only DLA ICP inventory record changes are made.  To accomplish the redistribution action, the DoD Component will provide a DLMS 511R, Requisition, (DLMS 940R, Redistribution Order, is not allowed).  The following entries are required:  DoDAAC of new depot to show Component-owner assets; Signal Code M; Advice Code 8G (indicates dual ownership change); depot previously showing Component-owned assets; ownership code; and condition code.  A DLMS 867I, Issue (DoD Activities), and DLMS 527R, Materiel Receipt – Other Than Procurement Instrument Source (DoD Activities), will be recorded for DLA-owned materiel on the DLA ICP inventory record.  A DLMS 867I, Issue (Returned Purchases), and DLMS 527R, Materiel Receipt – Other Than Procurement Instrument Source (DoD Activity), for the Component–owned inventory will be recorded and an image of the DLMS 867I and DLMS 527R will be sent to the Component ICP.

		C4.7.18.9.  To terminate the asset posture under the MOA, the Component ICP may direct shipment of the materiel using the directed shipment format above, or one of the following methods.

			C4.7.18.9.1.  Change the ownership while maintaining the inventory at the same depot.  To accomplish this, the DoD Component will submit a DLMS 511R.  The following entries are required: Advice Code 8H, the depot, ownership code, and condition code.  The DLA ICP generates a DLMS 947I Issue (Other), internally and sends the Component ICP an image of the DLMS 947I and a DLMS 527R, Materiel Receipt – Other Than Procurement Instrument Source (Other).

			C4.7.18.9.2.  Direct the materiel to a DLA Disposition Services Field Office.  To accomplish this, the DoD Component will send a DLMS 511R.  The following entries are required:  Advice Code 8J; depot; and the DLA Disposition Services Field Office.

	C4.7.19.  Retransmitting Requisitions to Another Source of Supply 

		C4.7.19.1.  Continued Supply Action.  The source of supply may retransmit requisitions to another source for continued supply action.  The source of supply must always identify the date of receipt of the original requisition in the PO1 Loop, G62 segment, in the retransmitted requisition.  The source of supply must always include Special Requirements Code 888 in retransmitted requisitions submitted to the SMCA that are backorder releases from the DoD Component ICPs.

		C4.7.19.2.  Nonconsumable Items.  When a SICA receives a requisition for a nonconsumable item from a SICA activity, the SICA may initiate supply action if stocks are normally held for this purpose, or the SICA may forward the requirement to the PICA.  If forwarded to the PICA, the SICA must record the requisition as received from the SICA requisitioning activity and recode the requirement, as necessary, with status addressees, treasury symbol number/fund purpose code, and/or project code that will ensure PICA output of status, billing, MOV requests, and consignment instructions consistent with the SICA Service's NIP implementing instructions.  If the PICA is only to provide status to the SICA, the SICA will not provide Status Code BM to the requisitioning activity.  The SICA will provide the SICA requisitioning activity with status received from the PICA based on the data elements and coding contained in the original requisition.

		C4.7.19.3.  Inter-Service Ownership Transfer of Ammunition/Ammunition-related Materiel.  When used for Service-initiated inter-Service ownership transfers of Single Manager for Conventional Ammunition (SMCA) ammunition and ammunition related materiel with no physical movement of materiel or billing, the initiating referral order will cite Project Code CYK and Signal Code M indicating a free issue, in conjunction with the additional data required to accomplish the transfer.  This includes the old (from) ownership code associated with the service transferring ownership, the RIC of the Service receiving ownership, and the new/gaining (to) ownership code associated with the Service receiving ownership.  Pending transition to DLMS discrete data enhancements, the ownership to/from and new owner RIC will be identified in the supplementary address/supplemental data field beginning with Service/Agency Code Y (see Appendix 7.9, Supplementary Address/Supplemental Data, for proper sequencing of these data elements into a single, concatenated field).  The referral order will include an M&S code or distribution code ensuring follow-on status is directed appropriately (e.g., M&S Code B); do not designate status to the supplementary address.  No shipment status will be provided.

	C4.7.20.  Processing Follow-Ups

		C4.7.20.1.  Time Standards.  Process the DLMS 869A or DLMS 869F to determine the current status of requisitions.  Time standards for dispatching status in reply to follow ups established for the distribution system are as follows:

			C4.7.20.1.1.  PD 01-08.  For PD 01-08, dispatch status within two calendar days from the date of receipt of the follow-up.

			C4.7.20.1.2.  PD 09-15.  For PD 09-15, dispatch status within five calendar days from the date of receipt of the follow-up.

		C4.7.20.2.  Providing Shipment Confirmation.  A storage activity, in response to a follow-up initiated by a source of supply, will use the DLMS 945A to provide shipment confirmation, denial, or supply status information, as appropriate.

		C4.7.20.3.  Storage Activity Processing.  Storage activities will provide Status Code BE if there is a record of the MRO but no record of having taken action in response to the MRO.  Sources of supply in receipt of this status validate the original requirement with the requisitioner or, for GFM requisitions, with the MCA.  The MCA is responsible for taking the necessary action to validate GFM requirements with the requisitioner and the source of supply.  If the requested materiel has not been received, and the requisitioner or the MCA's response indicates a continued valid requirement, the processing point will generate an MRO modifier transaction that contains the same data as the original MRO.  Storage activities in receipt of MRO modifiers will process them using paragraph C4.7.23.

		C4.7.20.4.  Generation of Pseudo Shipment Status.  Sources of supply in receipt of Status Code BE, or after 60 calendar days have passed from the MRO generation date without confirmation or receipt of an MRA, will generate a shipment status DLMS 856S with Transaction Type Code NC, to DAAS.  Shipment status for SA requisitions will be forwarded to the applicable ILCO.  This shipment status will not cite a TCN or the mode of shipment and the generation date will be used as the date released to the carrier.  DoD Components will establish a management evaluation program that monitors storage activities providing Status Code BE.  Goals should be established and the performance attained be a rating element of the activity commander.

		C4.7.20.5.  Storage Activity Response with no Record Receipt.  Storage activities responding to a follow-up initiated by a source of supply on an MRO for which no record is held at the storage activity will provide Status Code BF.

		C4.7.20.6.  Source of Supply Follow-Up Response.  Sources of supply in receipt of storage activity responses to follow-ups will furnish appropriate status to eligible recipients using section C4.7 procedures.

		C4.7.20.7.  Request for Supply Assistance

			C4.7.20.7.1.  Requests for supply assistance require management decisions relative to supply requirements that are not normally programmed in a manner to permit mechanical processing.  Therefore, these transactions should be manually reviewed to permit a determination as to whether the ESDs can be improved.  Receipt of requests for supply assistance serves as notification of the need for the concerned materiel to be received by consignees on dates earlier than those that would result from the shipments accomplished using the source of supply ESDs.  The actual date of the requirement need is the prerogative of the requisitioning activity.  Any advancement of the ESDs, including a single day, will be considered by sources of supply as an improvement.  Management decisions, designed to improve ESDs, should include one or more of the following, and/or any other additional actions that will improve the ESDs:

				C4.7.20.7.1.1.  Cannibalization of existing equipment.

				C4.7.20.7.1.2.  Acceleration of repair programs.

				C4.7.20.7.1.3.  Offers of I & S items.

				C4.7.20.7.1.4.  Diversion of materiel shipments.

				C4.7.20.7.1.5.  Supply from reserve assets.

				C4.7.20.7.1.6.  Supply from known station or depot excess stocks.

				C4.7.20.7.1.7.  Supply resulting from screening of materiel held pending classification.

			C4.7.20.7.2.  ESD Improvement Considerations.  During the course of actions taken to improve ESDs, follow-up inquiries will not be construed by sources of supply as authority to override any requirements of equal and/or higher priority.  Consideration will not be given to diversion of any assets required to satisfy requirements of equal and/or higher priority.

			C4.7.20.7.3.  Improving ESD.  When determination is made that requested improvement in ESDs can be accomplished, the revised ESDs will be transmitted to status recipients.  When actions taken by management do not result in improved ESDs, status recipients will be provided with the latest status applicable to the requisitions concerned.

			C4.7.20.7.4.  Source of Supply Status.  Sources of supply, in receipt of follow-ups on requisitions for which MROs were created directing lateral redistribution of retail stock, will provide applicable status as follows:

				C4.7.20.7.4.1.  If the current status is BA and the ESD or the UMMIPS timeframes, whichever applies, has not passed, provide Status Code BA with the appropriate ESD to the requisitioner.

				C4.7.20.7.4.2.  If the current status is BA and the ESD or the UMMIPS timeframes has passed, provide Status Code B5 to the requisitioner and send a DLMS 940R, Materiel Release, with Transaction Type Code NB to the reporting activity.  Sources of supply in receipt of responses to follow-ups will send appropriate status to eligible recipients using section C4.7. procedures.

				C4.7.20.7.4.3.  If the current status is positive shipping status, provide a DLMS 856S with Transaction Type Code AS.

			C4.7.20.7.5.  Retransmitting Inquiries.  Processing points retransmitting requisition inquiries to another source of supply for continued action will cite their DoDAAC as the FROM-address.  Processing points receiving such retransmitted transactions will not automatically retransmit such transactions back to the processing point from which the transaction was received without obtaining the prior agreement of that activity.

	C4.7.21.  Force-Closed MRCs. After generating pseudo shipment status transactions for unconfirmed MROs under subparagraph C4.7.20.4., sources of supply will hold the MRO record open pending an MRA response (under Chapter 10).  If an MRA response is received, use it to close the record.  For shipments to SA recipients, the source of supply may elect to use the MRA data or generate a DLMS 940R, indicating the mode of shipment and date shipped from the MRA, to interface with billing.  If an MRA response is not received within the initial and follow-up timeframes, the source of supply may force-close the MRO.  For shipment to SA recipients, sources of supply will ensure that proper inventory accounting and billing procedures are applied.  In response to an MRA indicating non-receipt, the source of supply may force-close the open MRO and bill for the materiel, or reprocess (ship) the materiel based upon established dollar thresholds.

	C4.7.22.  Processing Redistribution Orders (RDO)

		C4.7.22.1.  RDOs are originated by an ICP/IMM to direct release of materiel from a supply distribution activity to another within the same distribution system.

		C4.7.22.2.  For intra-Service use, an RDO may be used to direct release and shipment of materiel from a post, camp, station, or base to another similar activity within the Service’s distribution system to satisfy a specific Service demand.

		C4.7.22.3.  For intra-DLA use, an RDO may be used to redistribute DLA stock from a DLA Distribution Center to the contractor location in support of the DLA’s Industrial Product-Support Vendor (IPV) program.

		C4.7.22.4.  Prepare RDOs using the DLMS Implementation Convention 940R.

	C4.7.23.  Processing Requisition and MRO Modifiers

		C4.7.23.1.  Source of Supply Processing.  Sources of supply will process a DLMS 511M, Requisition Modifier transaction to provide for modification of requisitions on backorder or for which MROs have not been processed to storage or retail activities.  The corresponding original requisitions in process, and materiel obligations, will be recycled under DoD Component policy and normal processing actions will be continued to accommodate the modified PD, special requirements code, or RDD/RDP.

			C4.7.23.1.1.  Modification.  Modification of MROs is at the discretion of the DoD Components.  However, modifications will not be processed against requisitions for which MROs of retail assets have been generated.

			C4.7.23.1.2.  Direct Delivery Modification.  Modification of requisitions that have been submitted to procurement sources for direct delivery is not required, except for requisition modifier transactions that contain:

				C4.7.23.1.2.1.  A revised country FMS offer/release option code and/or FF code.

				C4.7.23.1.2.2.  Special Requirements Code 555.

				C4.7.23.1.2.3.  Changes to the SHIP-TO address.

			C4.7.23.1.3.  Split Actions.  The application of modifiers on requisitions for which split actions have been taken by the source of supply is at the option of the DoD Components.

			C4.7.23.1.4.  Source of Supply Status.  Sources of supply will provide status (DLMS 870S) after processing requisition modifier transactions as follows:

				C4.7.23.1.4.1.  Invalid Transaction Entries.  When the modifier transaction contains invalid entries for data elements listed in paragraph C4.5.1. or the DoDAAC authority code edits in paragraph C4.10.11., the modifier request will be rejected using Status Code D7.

				C4.7.23.1.4.2.  Requisition Modifier Transaction Not Honored.  When the requisition modifier transaction is not honored because the requested modifications cannot be made, sources of supply will provide Status Code B2 to the activities designated on the unmodified requisition.

				C4.7.23.1.4.3.  Modifications Successfully Processed.  When the requested modifications have been successfully processed, Status Code BK will be provided.

			C4.7.23.1.5.  In addition, when modifier transactions are processed, sources of supply will provide the latest supply or shipment status to all parties identified in the original or modified requisition transaction.

			C4.7.23.1.6.  Sources of supply will process requested modifications only when all data fields can be modified, as requested.  If this cannot be done, reject the modifier using DLMS 870S with Status Code B2.

		C4.7.23.2.  Submitting Modifier Transactions to Storage Activities.  When the DoD Components modify MROs, submit a modifier transaction (DLMS 940R) to the applicable storage activity.  Prepare the DLMS 940R modifier transaction as a result of processing the requisition modification.

			C4.7.23.2.1.  Storage activities, upon receipt of MRO modifier transactions, will modify the original MRO whenever the modifier is received prior to the actual printing of the DD Form 1348-1A, ”Issue Release/Receipt Document.”  This will be accomplished by matching the document numbers of modifier transactions with document numbers of MROs having been previously received, including a match of suffix codes.

			C4.7.23.2.2.  These modified transactions will be processed in the normal manner prescribed for MROs.

			C4.7.23.2.3.  When storage activities receive MRO modifier transactions for which they have no record of the original MRO, they will process the modifier transactions as new MROs.

			C4.7.23.2.4.  Storage activities will provide DLMS 945A with Status Code B2 or BK to advise sources of supply when requested modifications are or are not accomplished.

		C4.7.23.3.  Referring Activity Processing.  When requisition modifications are referred to another source of supply, the referring activity will identify the activity to which the requisition was referred as well as their own activity in the transaction and retransmit.  Processing points receiving such passed transactions will not automatically pass such transactions back to the processing point from which the transaction was received without obtaining the prior agreement of that activity.

	C4.7.24.  Processing Single Line-Item Cancellation Requests.  Sources of supply, procurement, storage, and reporting activities will process single line-item cancellations, as prescribed herein.

		C4.7.24.1.  Preventing Shipment of Unwanted Materiel.  Sources of supply, procurement, and storage, and reporting activities are responsible for exercising the fullest practical resourcefulness in preventing the issue and shipment of unwanted materiel.  The practical considerations involved in processing cancellation requests include such factors as time, related packing and handling costs, the dollar value, and location of materiel for which cancellation is requested.

		C4.7.24.2.  General Rules.  General rules for the disposition and diversion of materiel that has been shipped are as follows:

			C4.7.24.2.1.  Sources of supply are responsible for providing diversion and/or disposition instructions for all items under their control destined for OCONUS that have progressed to the point where procurement actions cannot be terminated or shipment into the DTS has occurred.  When OCONUS shipments have been lifted from CONUS terminals, the responsibility for diversion or disposition is that of the consignee, the appropriate theater commander, or the DoD Component.

			C4.7.24.2.2.  Sources of supply may request diversion or disposition instructions from the DoD Component contact points designated on the DEDSO Website for both nonstocked and non-NSN items.  However, sources of supply may, based on their stock position, divert materiel to depot stock.

			C4.7.24.2.3.  The DoD Components may predetermine and designate alternate consignees so that the DoDAAC of these activities may be inserted in later supply and/or transportation transactions.  These predetermined destinations will be based on considerations as stated above, and may vary by NSN, FSC, or Federal Supply Group (FSG).

			C4.7.24.2.4.  When OCONUS shipments cannot be diverted or held for disposition, storage, and procurement, activities will advise sources of supply when elements of the DTS were unable to accomplish the desired shipment diversion or hold.  The source of supply will provide a DLMS 856S to all eligible recipients of status.  These transactions will contain a date, as provided by the clearance authorities, on which the shipment was lifted from the terminal for delivery OCONUS.

			C4.7.24.2.5.  When diversion of OCONUS shipments is accomplished by the DTS, sources of supply will furnish a DLMS 870S with Status Code B6 to all authorized status organizations.  The advice of actions taken by the DTS will be provided under DTR 4500.9-R.

			C4.7.24.2.6.  Sources of supply will automatically initiate cancellation action for unfilled quantities of materiel obligations or open requisitions upon deletion from the DoDAAD of a DoDAAC identified as requisitioner, ship-to, or bill-to activity.  Applicable supply and shipment status will be furnished to authorized recipients and, in the event DAAS does not have a recorded DoDAAC, the status will be disposed of.

			C4.7.24.2.7.  Costs incurred in cancellations/diversion will be billed as provided in subparagraph C4.7.28.6.

			C4.7.24.2.8.  No attempt will be made to stop or divert shipments to CONUS (domestic) consignees once released for shipment, regardless of the mode of shipment.

	C4.7.25.  Reserved

	C4.7.26.  Reserved

	C4.7.27.  Source of Supply Processing of Single Line-Item Cancellation Requests.  Process cancellation requests DLMS 869C, as follows:

		C4.7.27.1.  First, against backorders in the following order of assigned Status Codes:  BB, BC, BD, BP[footnoteRef:22] BZ, and BV. [22:  Staggered implementation authorized. Refer to ADC 93A.] 

		C4.7.27.2.  Second, against unconfirmed shipments (Status Code BA).

		C4.7.27.3.  Third, confirmed OCONUS shipments DLMS 945A, when shipped (to surface/aerial POEs and SEAVAN assembly points) prior to ICP receipt of cancellation requests in less than 45 calendar days for surface mode and 10 calendar days for air mode.

		C4.7.27.4.  Fourth, against all other status.

	C4.7.28.  Processing Point Procedures.  Processing points receiving passed follow-up transactions will not automatically pass such transactions back to the processing point from which the transaction was received without obtaining prior agreement of that activity.

		C4.7.28.1.  Initiating.  Initiate/accomplish cancellation actions against the quantity in the cancellation request received.

		C4.7.28.2.  Editing.  Edit cancellations processed to preclude duplicate cancellations.  As a minimum, this edit will compare quantity, document number, suffix, and preparation date.  Discard duplicates.  Process all other cancellations as received.

		C4.7.28.3.  Processing.  Process cancellation requests, regardless of dollar value or quantity, to immediately cancel quantities for which MROs and purchase requests have not been submitted to the storage, reporting, or procurement activities.

		C4.7.28.4.  Quantity Limits.  If the quantity in the cancellation request is equal to, or less than, the backorder quantity at the source of supply (Status Code BB, BC, or BD), effect cancellation immediately and send a DLMS 870S with Status Code BQ to all authorized status organizations.  Since cancellation action cannot be effected immediately on requisitions in Status Code BV, send a DLMS 870S with Status Code B9 to all authorized status organizations. 

		C4.7.28.5.  Diversions.  When cancellation requests are against released shipments or direct vendor delivery with Status Code BV, the source of supply will consider diversion of the materiel to depot stock or to fill other demands/backorders, or contract termination, as appropriate.  The foregoing also applies to nonstocked and non-NSN materiel at S/A option, when there is a foreseeable demand for the item.

		C4.7.28.6.  Status.  In the event the above actions are taken, use a DLMS 870S with Status Code B4 to indicate that the organization identified in the canceled requisition may be billed as follows:

			C4.7.28.6.1.  Transportation costs for returning the materiel to storage and/or procurement termination costs when it is determined that termination is in the best interest of the Government.

			C4.7.28.6.2.  Specific instructions concerning materiel, transportation charges, and credit allowances are contained in the MILSBILLS procedures documented in DLM 4000.25, Volume 4, Finance.

			C4.7.28.6.3.  In addition to the above costs, when applicable, the source of supply will bill rebuilding costs and other expenses incurred in canceling SA requisitions under DoD 5l05.38-M.

			C4.7.28.6.4.  Charge for transportation (such as terminal costs associated with stopping, holding, and returning materiel to depots or storage) and procurement termination costs incidental to actual diversion/cancellation of FMS requisitions under DoD 5105.38-M.

		C4.7.28.7.  Reversals.  Demand data previously recorded will be reversed by the quantity of the cancellation request.  The demand data must always be adjusted regardless of the outcome of processing the cancellation request.

		C4.7.28.8.  Notification.  Provide notice of the success or failure of cancellation or diversion actions to all authorized status organizations under section C5.2.  Use the supply or shipment status to provide this notice as follows:

			C4.7.28.8.1.  DLMS 870S with Status Code B4, B6, BQ, BR, or BS to indicate cancellations/diversions accomplished.

			C4.7.28.8.2.  DLMS 870S with Status Code B9 to indicate cancellation/diversion action being attempted.

			C4.7.28.8.3.  DLMS 856S with shipment status to indicate cancellation/diversion not accomplished.

			C4.7.28.8.4.  DLMS 870S with Status Code B8 to indicate cancellation not accomplished as a follow-up to the previously sent Status Code B9.

			C4.7.28.8.5.  DLMS 870S with Status Code BF to indicate no record of the transaction reference number for the cancellation request submitted.

			C4.7.28.8.6.  DLMS 870S with an appropriate B_, C_, or D_ series status code for those transactions showing a record of a previous cancellation or rejection.

	C4.7.29.  Source of Supply Submission of Single Line-Item Cancellation/Diversion Requests to Procurement

		C4.7.29.1.  Using DLMS 869C.  Use a DLMS 869C to prepare cancellation requests.  Cite the appropriate contract data when sending cancellation requests to procurement.  Identification of the contract data or procurement/purchase request number (PRN) will be dependent upon whether a number is assigned to a contract and is known to the source of supply at the time of receipt of the cancellation request.  When the PRN is used, indicate the DoDAAC of the consignee to which to divert the shipment.  When the source of supply does not desire diversion, do not indicate a diversion address.

		C4.7.29.2.  Required Information.  All requests for cancellation/diversion submitted to the procurement activity will contain the following minimum information:

			C4.7.29.2.1.  Notification that the transaction is a request for cancellation or diversion.

			C4.7.29.2.2.  Identification of the source of supply submitting the request.

			C4.7.29.2.3.  The stock or part number or description of the item involved.

			C4.7.29.2.4.  The quantity of the item to be canceled/diverted.

			C4.7.29.2.5.  The original requisition document number and the suffix code, if applicable.

			C4.7.29.2.6.  Identification of the ship-to and mark-for addresses, as contained in the applicable purchase request.

			C4.7.29.2.7.  All contract data, if known; otherwise, the PRN and date of the purchase request.

			C4.7.29.2.8.  Diversion or hold instructions to include coded and in-the-clear, ship-to, and mark-for addresses for shipment, if diversion is to be accomplished.

		C4.7.29.3.  Cancellation/Diversion Requests.  Submit cancellation/diversion requests to procurement activities:

			C4.7.29.3.1.  Regardless of dollar value and/or quantity, when the purchase requests have been submitted but the contracts have not been awarded.  This applies to items and/or quantities assigned Status Code BZ.

			C4.7.29.3.2.  For items and/or quantities on awarded contracts and/or purchase agreements and the dollar value of the cancellation/diversion action exceeds $200.

		C4.7.29.4.  Source of Supply Responsibilities.  Sources of supply will decide whether to suspend or continue the cancellation, diversion, or hold actions.  Decisions to continue cancellations or diversions will be provided to procurement activities by cancellation request documents prepared in the manual format and containing the notation:  SOURCE OF SUPPLY DECISION FOR CANCELLATION OR DIVERSION.  Sources of supply will advise the ILCO of contractual agreements that will result in cost conditions if cancellations, diversions, or holding are accomplished.  ILCOs will decide whether the cancellation, diversion, or hold actions will be suspended or continued.  Decisions to continue cancellations or diversions will be sent to the source of supply by narrative message containing the notation:  ILCO DECISION FOR CANCELLATION OR DIVERSION.

		C4.7.29.5.  Exceptions to Cancellation/Diversion Requests.  Do not submit cancellation/diversion requests or requests for determination whether cancellation is in the best interest of the Government to procurement activities when:

			C4.7.29.5.1.  The dollar value of the request is less than $200.[footnoteRef:23] [23:  As an exception for intra-Component use only, cancellation/diversion may be submitted to procurement regardless of dollar value when critical/short supply items are affected. ] 

			C4.7.29.5.2.  DD Form 250, “Material Inspection and Receiving Report,” shipment performance notice (SPN), vendor shipment notice, or equivalent is on record indicating:

				C4.7.29.5.2.1.  Shipments to CONUS consignees were released to carriers regardless of dollar value.

				C4.7.29.5.2.2.  Shipments to OCONUS consignees were previously released to carriers, and the number of days prescribed above have elapsed (10 calendar days’ air/45 calendar days’ surface).

				C4.7.29.5.2.3.  Shipment/delivery by air mail or parcel post.  In this case, shipment status will be sent in response to cancellations received.

		C4.7.29.6.  Notice of Cancellation/Diversion Actions.  Send notice of the success or failure of cancellation or diversion actions to authorized status organizations under the procedures of Chapter 5.  Use supply and/or shipment status to provide this notice as follows:

			C4.7.29.6.1.  DLMS 870S with Status Code B4, B6, BQ, or BS applies to cancellations/diversions accomplished.

			C4.7.29.6.2.  DLMS 870S with Status Code B9 indicates cancellation/diversion action being attempted.

			C4.7.29.6.3.  DLMS 856S with shipment status indicates cancellation/diversion not accomplished.

			C4.7.29.6.4.  DLMS 870S with Status Code B8 indicates cancellation not accomplished when Status Code B9 previously sent.

	C4.7.30.  Procurement Activity Processing of Single Line-Item Cancellation and/or Diversion Requests to Procurement

		C4.7.30.1.  Processing Sequence.  DLMS 869C and manual cancellation/diversion requests will be processed in PD sequence.

		C4.7.30.2.  Immediate Cancellation.  Immediate cancellation action will be taken when contracts have not been awarded and/or firm orders have not been issued/placed.

		C4.7.30.3.  Procurement Activity Responsibilities.  Procurement activities will advise the source of supply of contractual agreements that may result in unfavorable cost conditions if cancellation, diversion, or holding actions are accomplished.  Sources of supply will decide whether the cancellation, diversion, or hold actions will be suspended or continued.  Decisions to continue cancellation or diversion will be sent to procurement activities by cancellation request documents prepared in the manual format and containing the notation:  SOURCE OF SUPPLY DECISION FOR CANCELLATION OR DIVERSION.

		C4.7.30.4.  Cost of Diversion.  The cost of diversion or shipment hold actions will be sent to the source of supply for appropriate billing.  Costs incurred in contract termination and diversion will also be sent to sources of supply to permit appropriate billing.

		C4.7.30.5.  Procurement Actions with Clearance Authorities.  Procurement activities are required to initiate actions with clearance authorities to cause diversion of shipments at terminals.  Procurement activities requiring diversion instructions, when a new consignee is not provided, will request these instructions from the source of supply by telephone or message.

		C4.7.30.6.  Actions Not in Government’s Best Interest.  When the above cancellation/termination or diversion/hold actions would not be in the best interest of the Government, the source of supply will be advised and requested to give a decision by a specified date.

		C4.7.30.7.  Initiating Contract Actions.  Actions to cancel, divert, or terminate contracts will be initiated within one working day from receipt of cancellation requests.  These actions must be completed as fast as possible, but will not exceed five working days for PD 01-08 requests and 10 working days for PD 09-15 requests.  When multiple cancellation requests are received on the same day, consideration will be given to the priority of the requests, OCONUS destination, the dollar value of the materiel, and the status of the contract involved.

		C4.7.30.8.  Source of Supply Notification.  The procurement activity will advise the source of supply the attempted stop/diversion action has/has not been done by DTS within two working days of receiving the confirmation/denial notification from DTS.

	C4.7.31.  Source of Supply Processing of Cancellation Requests for MROs of Retail Assets

		C4.7.31.1.  Requirements.  Source of supply cancellation requests, DLMS 940R, will be sent to reporting activities regardless of dollar value and quantity when Status Code BA is recorded, but shipment status has not been received.  The source of supply will send DLMS 870S with Status Code B9 to all eligible recipients.  If shipment status has been received, provide this status to all eligible recipients.

		C4.7.31.2.  Status Reporting.  Sources of supply in receipt of responses to cancellation requests will send appropriate status to all eligible recipients.

	C4.7.32.  Source of Supply Submission of Single Line-Item Cancellation and/or Diversion Requests to Storage Activities

		C4.7.32.1.  Requirements.  Source of supply cancellation requests or follow-ups on cancellation requests, DLMS 940R, will be sent to storage activities:

			C4.7.32.1.1.  Regardless of dollar value and quantity when Status Code BA is recorded, but an MRC has not been received; this applies to PD 01-15 requisitions/MROs for U.S. Forces, CONUS and OCONUS, and SA.

			C4.7.32.1.2.  When MRC is recorded on an OCONUS shipment released to a carrier for shipment to POE, less than 45 calendar days by surface mode or less than 10 calendar days by air mode, and the dollar value of the shipment exceeds $200.

		C4.7.32.2.  Diversions.  DLMS 940R will identify the DoDAAC of the activity to which shipments will be diverted when shipment has already been released.  When the source of supply does not desire or cannot provide diversion to a specific activity, do not indicate a diversion address.  In the latter case, the source of supply will obtain and provide alternate destinations, if requested, by storage activities.

			C4.7.32.2.1.  Attempted Diversions.  In the case of an attempted diversion, the source of supply will send DLMS 870S with Status Code B9 to authorized status organizations.

			C4.7.32.2.2.  Exceptions.  Sources of supply will not send storage activities requests for cancellation/diversion when:

				C4.7.32.2.2.1.  In receipt of the MRC at the time of receipt of a cancellation request and the item requested for cancellation has a line-item value of less than $200 and is for an OCONUS shipment.

				C4.7.32.2.2.2.  Receipt of an MRC and OCONUS shipment has been done by parcel post, priority mail, or UPS.

				C4.7.32.2.2.3.  The MRC is recorded on an OCONUS shipment released to the carrier for shipment more than 45 calendar days by surface mode or 10 calendar days by air mode prior to receipt of the cancellation request.

				C4.7.32.2.2.4.  Receipt of the MRC and shipment to a CONUS activity was done prior to the receipt of the cancellation request.

			C4.7.32.2.3.  Shipment Status Reporting.  In the instances described above, send DLMS 856S to authorized status organizations.

	C4.7.33.  Storage Activity Processing of Single Line-Item Cancellation and/or Diversion Requests

		C4.7.33.1.  Processing Cancellations.  Process cancellations using DLMS 940R in the sequence prescribed in paragraphs C4.7.1.2, and C4.7.27.

		C4.7.33.2.  Maintaining Records.  Maintain records to allow a determination whether line items shipped were in single-line or multi-line shipment units and the respective dollar value of each.  This allows identification of shipment units susceptible to cancellation and determination whether cancellation actions should be continued under the following policies and procedures.

		C4.7.33.3.  DoD Component Data Processing.  To the extent that processing capability is available, the DoD Components will develop and maintain data to:

			C4.7.33.3.1.  Allow identification of the depot work area to which shipment processing should have progressed.  Work areas for consideration are shown in Table C4. T2.

			C4.7.33.3.2.  Include the maximum time experienced in processing DD Form 1348-1A or 1348-2, ”Issue Release/Receipt Document with Address Label,” shipments in each of the above work areas (within total time allowed by DoDM 4140.01 from receipt of MRO to release to transportation).  Such data would provide a basis for determining the work areas where stop shipment action could be taken on receipt of a source of supply cancellation request to the storage activity.  Also, consider the transaction priority as it affects processing time in hours versus days.

		C4.7.33.4.  Routing.  The storage activity, upon receipt of a cancellation request DLMS 940R from the source of supply, will determine the appropriate work area(s) to which the stop shipment notices would be sent when cancellation of an in process DD Form 1348-1A shipment is required.  Stop shipment notices will include pertinent line-item/transaction identification, priority, and information whether a single-or multi-line shipment unit, is involved.  A separate stop shipment notice will be issued to the current work area and every other work area through which the shipment would later be processed.

		C4.7.33.5.  Cancellation.  Do cancellation for all items/quantities for which a DD Form 1348-1A has not been released to storage work areas.

		C4.7.33.6.  Release to Storage Work Area.  Attempt cancellation for all items/quantities for which a DD Form 1348-1A has been released to storage work areas and there is no record of transportation release to a carrier, unless:

			C4.7.33.6.1.  The dollar value is less than $25 for a single line-item shipment unit.

			C4.7.33.6.2.  The dollar value of a single line-item packed in a consolidated shipment unit is less than $200.

		C4.7.33.7.  Source Notification.  The storage activity will advise the source of supply and, if applicable, all authorized status organizations of actions taken in response to cancellation requests.  Send this notice as follows:

			C4.7.33.7.1.  When the storage activity has no record of the MRO receipt, provide Status Code BF using a DLMS 945A.

			C4.7.33.7.2.  When the items have not left the depot and cancellation action is accomplished, respond only to the source of supply with a DLMS 945A with Status Code BQ.

			C4.7.33.7.3.  When cancellation is not attempted under the less than $25/$200 criteria, the storage activity will send the source of supply a DLMS 945A with Status Code B8.

			C4.7.33.7.4.  When the items have been released to a carrier in shipments destined to a CONUS customer, take no action to stop/divert the materiel beyond the point of shipment.  Send the source of supply a DLMS 945A with Status Code B8 (Transaction Type Code NJ in the WO6 segment) and pertinent shipping information in the applicable segments.

			C4.7.33.7.5.  When the items have been released to a carrier in shipments destined for an OCONUS consignee, the storage activity will initiate actions under DTR 4500.9-R to stop or divert shipments within the DTS.  Send Status Code B9 to the source of supply via a DLMS 945A.

			C4.7.33.7.6.  The storage activity will not initiate action to stop or divert OCONUS shipments within DTS when:

				C4.7.33.7.6.1.  The items are consolidated in a multi-line shipment unit.

				C4.7.33.7.6.2.  The items were in OCONUS shipments released to carriers for shipment more than 45 calendar days by surface or more than 10 calendar days by air prior to receipt of the cancellation request.

				C4.7.33.7.6.3.  The items were shipped to OCONUS customers by priority mail, parcel post, or UPS.

				C4.7.33.7.6.4.  A single line-item shipment has a total dollar value of less than $200.

				C4.7.33.7.6.5.  The single line-item shipment unit has a total dollar value of less than $1,000 and was shipped in consolidation with other shipment units in a larger container, such as a CONEX and SEAVAN.

		C4.7.33.8.  Status Notification.  Following receipt of confirmation that shipment stop or diversion action has been accomplished by DTS, the storage activity will provide Status Code B6 to the source of supply.

		C4.7.33.9.  Stop/Diversion Non-Initiated.  When the storage activity does not initiate stop or diversion action with DTS because of one of the conditions identified above or, when notified that a requested stop or diversion action has not been done by DTS, the storage activity will send to the source of supply a DLMS 945A with Status Code B8 (Transaction Type Code NJ in the WO6 segment) and pertinent shipping information in the applicable segments.

		C4.7.33.10.  Notification Requests.  Storage activities requiring diversion instructions when applicable information is not included in the cancellation request will request such instructions from the source of supply by telephone or message.

		C4.7.33.11.  Processing Time.  Storage activities must complete the above actions in two working days for PDs 01-08 and five working days for PDs 09-15.

		C4.7.33.12.  Status of Stop/Diversion Request.  The storage activity must advise the source of supply the attempted stop or diversion action has or has not been done by DTS within two working days of receiving the confirmation or denial notification from DTS.

	C4.7.34.  Reporting Activity Processing Cancellation Requests for Lateral Redistribution Orders (LRO) of Retail Assets

		C4.7.34.1.  Cancellation.  Reporting activities will attempt cancellation to the maximum extent possible.

		C4.7.34.2.  No LRO Record.  When the reporting activity has no record of the LRO receipt, send the source of supply a DLMS 945A with Status Code BF.

		C4.7.34.3.  Cancellation not Possible.  When cancellation cannot be done, send the source of supply a DLMS 945A with Status Code B8.

		C4.7.34.4.  Successful Cancellation.  When cancellation can be done, send the source of supply a DLMS 945A with Status Code BQ.

		C4.7.34.5.  Diversion.  The reporting activity will not attempt diversion of materiel confirmed shipped.

	C4.7.35.  Direct Vendor Delivery on Requisitions

		C4.7.35.1.  Supply Activity Interface.  In instances where requisitions are done by DVD, an interface is required between supply and purchasing operations.  This interface will result in an interchange of specific information and documentation between sources of supply and procurement activities to ensure:

			C4.7.35.1.1.  Transmission of status to designated recipients in an orderly and timely fashion.

			C4.7.35.1.2.  Proper marking of shipment containers.

			C4.7.35.1.3.  Delivery of materiel using priorities or RDDs.

		C4.7.35.2.  Purchase Requests.  Purchase requests must contain specific in-the-clear and coded data, as specified below, that must be perpetuated on procurement instruments and related transactions:

			C4.7.35.2.1.  The original requisition number, including suffixes when assigned.

			C4.7.35.2.2.  In-the-clear, ship-to address of the ultimate consignee and mark-for address, when applicable.

			C4.7.35.2.3.  Project code and project name, if applicable.

			C4.7.35.2.4.  Schedule of deliveries using RDDs or RADs, as applicable.  List items on procurement requests in descending sequence of delivery or availability dates.  (A separate requisition number is required for each delivery date, consignee, and priority.)  This sequence will provide for listing items with earliest dates first and will result in the required schedule of deliveries.

			C4.7.35.2.5.  Identification and address of the organization to receive the notice or evidence of shipment made by contractors as required by Defense Federal Acquisition Regulation Supplement (DFARS) Appendix F.

		C4.7.35.3.  DVD Requisitions. Identify requisitions to be supplied by DVD sources separately from stock replenishment buys on purchase requests.

C4.8.  ARMY EXCHANGE REPARABLE PRICING PROCESS

	C4.8.1.  The Army approach to the Exchange Pricing (EP) is a multi-system functionality implementation.  EP employs a dual pricing system for reparable NSN items based upon standard price (latest acquisition cost plus recovery rate), EP (latest repair cost plus cost recovery rate), and a “buy one – return one” relationship with the customer.  That is, a qualified exchange pricing customer buys at the EP and pays a penalty if a reparable is not turned-in within a specified period of time from the issue date.  This process is applicable to Army customers and Army-managed materiel only; other Services will continue to pay Standard Price and receive 65% credit exchange upon receipt of carcass by the Army PICA.

	C4.8.2.  Once an item of supply is identified for a national repair program and the NIIN has an established Exchange Price, all requisitions for the items will be priced at the Exchange Price if the customer is an authorized EP customer.

	C4.8.3.  When a requisition submitted to the Supply Support Activity (SSA) is processed by the Standard Army Retail Supply System (SARSS), SARSS will determine if both the customer DoDAAC is an EP customer, and the NIIN has an established EP indicator.  As this transaction is processed through the Army supply system, middleware, Funds Control Module (including EP Tracking), DAAS, Commodity Control Supply System (CCSS), and Army Logistics Modernization Program (LMP), the EP indicator will be used to identify the transaction as EP related.  All the legacy systems will continue processing the legacy 80 record position transactions; LMP will process DLMS transactions that are converted by Transaction Services.

	C4.8.4.  All related supply transactions prepared by Army will carry and perpetuate the EP Indicator.  As a result of the EP implementation the following transactions are impacted:  Requisition; Requisition Modifier; Requisition Follow-up; MRO; and Supply Status.  The returns process will also process EP related transactions.  The Materiel Receipt Transaction will be generated by SARSS for all returns of EP NIINs, and will include an EP Type of Credit indicator for unserviceable credit when applicable, as well as an EP conversion indicator to identify the need to provide credit according to the pre-EP credit policy, that lasts for 60 calendar days following the implementation of EP.

	C4.8.5.  If the return is in an un-repairable condition code or the item is not returned within the established timeframe (Delta Delay Days), the National Level systems (LMP, CCSS) will create an obligation adjustment based on the receipt from Middleware Funds Control Module of a Materiel Returns Supply Status (Delta Bill Trigger) Transaction.  As a result of processing the delta bill trigger the national systems will create the logistics/interfund bill transaction with an EP Indicator and type bill code to identify the specific type of EP bill to the Army financial system.

C4.9.  NAVY EXCHANGE REPARABLE PRICING PROCESS

	C4.9.1.  Navy uses a two-tier pricing system for selling Depot Level Reparable materiel to Navy customers. The Navy sells DLRs to other Services at full (standard) price and then provides carcass value credit when the carcass is returned.  This is the same method the Air Force and Army use when selling reparable items to the Navy.  The Standard Price is the price representing the full value of the DLR item, and is the price charged when a Not Ready for Issue (NRFI) unit (also referred to as a ‘Carcass’) is not turned in. The Net Price (also referred to as Exchange Price) is the price that represents the cost of repairing a DLR item, and is the price charged to customers when a NRFI unit has been or will be turned in. Navy customers indicate on their requisitions whether or not a NRFI unit is available for turn-in via the Advice Code, and they are then charged Net or Standard Price accordingly.

	C4.9.2.  Requisitions received indicating that a carcass will be returned are tracked in the Navy’s Carcass Tracking System.  This system monitors these requisitions and matches them with carcass returns as they occur.  This system also generates follow-ups to customers who have not returned their carcasses as promised.  Ultimately, the system triggers an additional charge to the customer, if the carcass is not returned.  Navy uses the term Carcass Charge for this additional billing; it represents the difference between Standard Price and Net (Exchange) Price.  This additional billing is also referred to as a Delta Bill.  If the customer returns the carcass after receiving the Carcass (Delta) Bill, then the additional billing is reversed, resulting in a Carcass Charge Reversal (Credit Delta Bill). Navy customers may also return excess DLRs for credit.  The credit can be Standard, Net, or Carcass value.

	C4.9.3.  Under MILSBILLS legacy 80 record position billing, the Navy ICPs use the Sales Price Condition Code to indicate to customers that a particular bill is either Net (Exchange) Price or Carcass (Delta) Price. Once operational, Navy’s Enterprise Resource Planning will replace the Navy ICP’s legacy MILSBILLS billing system with a DLMS based system.  Since DLMS does not utilize a Sales Price Condition Code, Navy will use a combination of Stock Exchange Code and Type of Bill Code to indicate on the bill that the price charged is Standard, Net, or Carcass price. The DAAS will convert Navy DLMS bills back to MILSBILLS legacy 80 record position format for any Navy customers unable to accept DLMS formats.

C4.10.  DEFENSE AUTOMATIC ADDRESSING SYSTEM EDIT OF INCOMING REQUISITIONS 

	C4.10.1.  DAAS will edit all incoming requisitions and other DLMS transactions for data errors and validity under procedures in DLM 4000.25-4, “Defense Automatic Addressing System.”

	C4.10.2.  As a result of these edits, DAAS will correct data entries or reject transactions.  In case of source of supply errors, the correct source of supply will be entered and the transaction rerouted, as appropriate.

	C4.10.3.  DAAS will reject all requisitions/ FedMall orders containing GY/GZ series AACs.  DAAS will send DLMS 870S transactions with Status Code CX to advise all concerned of rejection of the requisition.

	C4.10.4.  DAAS will recognize the enhanced DLMS capability to discretely identify different DoDAACs as the requisitioner, ship-to, and bill-to activities as a DLMS enhancement.[footnoteRef:24] [24:   Refer to ADC 1009A.] 

		C4.10.4.1.  DAAS will perform validation to ensure that only FedMall generated requisitions contain the FedMall DoDAAC SC4210 as the bill-to DoDAAC.  When shipment to an activity other than the requisitioner is required, the FedMall DoDAAC will be included as the bill-to activity in the DLMS transaction in association with Fund Code XP and Signal Code L.  This construct is used to identify purchase/credit card as the method of payment.  Requisitions using this construct outside FedMall will be rejected.  DAAS will send a DLMS 870S transaction with Status Code CX to advise all concerned of the rejection.

		C4.10.4.2. While maintaining a mixed DLMS/MILSTRIP Legacy environment, DAAS will perform validation to ensure DLMS requisitions discretely identifying the bill-to DoDAAC in conjunction with Signal Code C or L do not conflict with the bill-to activity identified in the Fund Code to Billed DoDAAC Conversion Table (refer to DLM 4000.25, Volume 4, Appendix 1.2).  Inconsistent requisition content will be rejected.  DAAS will send a DLMS 870S transaction with Status Code CX to advise all concerned of the rejection. 

	C4.10.5.  DAAS will pass DLMS 511R part-numbered (DIC A02 and A0B) requisitions to the RIC present in the incoming transaction.

	C4.10.6.  DAAS will validate requisitions for invalid/expired OSD/JCS Category D project codes. DAAS will blank out the inappropriate project code and send DLMS 870S with Status Code BK to the customer.

	C4.10.7.  DAAS will validate F/AD I usage through the requisitioning process.  Requisitions with an unauthorized priority designator will be downgraded.  DAAS will send DLMS 870S with Status Code BK to the customer.

	C4.10.8.  DAAS will perform validation of requisitions (DLMS 511R, DLMS 511M, 517M, and DLMS 869F) for accuracy and reasonableness of the entry in the RDD field and its compatibility with the PD.  DAAS will send a DLMS 870S with Status Code BK to advise the requisitioner of the resulting modification.  For SA requisitions forwarded to the applicable ILCO, DAAS will not blank out customer input.  DAAS will perform PD and RDD edits according to Table C4. T1.  	

	C4.10.9.  DAAS will identify non-appropriated instrumentalities and prime vendor contractors using non-contractor DoDAACs for billing and provide for billing under non-interfund procedures by changing the fund code for these requisitions to XP.  A DoD Prime Vendor contractor is identified as a DoDAAC beginning with SD.  A non-appropriated funded activity is identified as a DoDAAC beginning with FT or FF.  DAAS will send a DLMS 870S with Status Code BK to the customer.

	C4.10.10.  DAAS will perform validation of requisitions for authorized ordering or billing DoDAACs.  Reject requisitions when the requisitioning DoDAAC is not authorized to order, identified as follows:  DoDAACs beginning with F followed by all numeric, FA, or FY.  Reject requisitions when the DoDAAC may not be used for billing, identified as DoDAACs beginning with FA or FY.  DAAS will send a DLMS 870S transactions with Status Code CX to advise all concerned of the rejection of the requisition.

	C4.10.11.  Requisition Date Edit.  DAAS will edit requisitions to reject any requisitions that are greater than one calendar year old, or are more than one day in the future.[footnoteRef:25]  For all requisitions (DIC A01, A0B, A02, A0E, A05, A07, A04, A0D), where the requisition is not applicable to FMS/Grant Aid or Navy initial outfitting (document number Service Code N, R, or V, and Fund Codes equals: VO (Victor Oscar), V7 (Victor Seven), or LQ (Lima Quebec), QU (Quebec Uniform) or QZ (Quebec Zulu)), then: [25:  Refer to ADC 427A.] 

		C4.10.11.1.  Reject requisitions that are more than one day in the future.  If the document number ordinal date YDDD (rp 36-39) converted to CCYYDDD is greater than the current date plus 1 (CCYYDDD + 1), reject with Supply Status CD, and if less than or equal to the current date plus 1, allow to process.

		C4.10.11.2.  Reject requisitions that are greater than one-year-old.  If the document number ordinal date YDDD (rp 36-39) converted to CCYYDDD is equal to or less than the current date minus 1 year (CCYYDDD - l000), reject with Supply Status CD, and if greater than the current date minus 1 year (CCYYDDD - 1000), allow to process. 

	C4.10.12.  DAAS and the source of supply will perform validation of requisitions, modifiers, and follow-ups that can be treated as requisitions for authorized ordering, bill-to, or ship-to DoDAACs according to the DoDAAC Authority Codes below (Table C4. T3.), and will reject requisitions that do not meet the DoDAAC authority code edits.  DAAS or the source of supply will furnish Status Code CX to advise all concerned of the rejection of the requisition.  If the transaction failing the edit is a modifier, then DAAS or the source of supply will reject with Status Code D7 (see Table C4.T5.).

C4-35	CHAPTER 4